Longevity Annuities - What are they?


A longevity annuity provides protection against outliving your money late in life. Also known as an advanced life delayed annuity, this type of annuity requires you to wait until you reach age 80 or so to begin receiving a payout. Once the payout begins, the annuity provides a guaranteed, regular amount of income for the rest of your life.1

As with any deferred annuity, your money in a longevity annuity grows until you start receiving payouts. The later you choose to begin your payments, the larger your payments will be.1

Buying a longevity annuity is like buying a homeowner’s or health insurance policy with a very large deductible. You’re insuring yourself against a catastrophic risk you can’t handle on your own – in this case, running out of money late in life – while holding your premium to a minimum. You typically would invest just a portion of your retirement nest egg in a longevity annuity – say, 10% to 25% – and leave the rest in your other retirement accounts. It’s only worth tying up a small portion of your savings in a longevity annuity, because should you die before you start receiving payouts, the entire balance of your account will be lost.2

Click the web links below to read more:


An interesting related article, click the web link below to read:

JACK GUTTENTAG: Longevity Annuities — A Much Underutilized Financial Tool



1. Source: CNN Money http://money.cnn.com/retirement/guide/annuities_longevity.moneymag/index.htm

2. Source: Time Money http://time.com/money/collection-post/2791259/what-is-a-longevity-annuity/


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Note: Annuities can be confusing to many people. As an "independent licensed agent" I try to explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose an annuity that you feel best fits your needs from a large choice of different insurance companies. Plus if you choose to work with me you will have personalized service by a local independent agent that can shop rates for you, rather than working with a captive agent working for just one insurance company. If you would like my assistance to discuss and/or start the process of getting an annuity please call me at 941-404-5334.