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Longevity Insurance


Longevity Insurance

What is Longevity Insurance?

Longevity insurance, also known as a longevity annuity or an advanced life deferred annuity, is a form of deferred annuity contract designed to provide “payments for life” but with payments that don’t begin until the distant future. Thus, for instance, while a single premium immediate annuity would provide lifetime income beginning now (e.g., purchased at age 65 with payments beginning at 65), the longevity annuity would take the same lump sum up front (at 65) but payments might not begin until the distant future (e.g., age 85).

How does longevity insurance work?

longevity annuity, also known as longevity insurance, is a type of deferred annuity designed to provide ongoing income in your later years. Typically you purchase the annuity around age 65 and begin the payout (or annuitization period) once you reach age 80 or so.

How much is longevity insurance?

Based on current pricing (for inflation-adjusted payments, with a joint survivorship payout that continues as long as either are alive, and a cash refund guarantee), this couple can buy a longevity annuity for their future $54,183/year (which is$4,515.28/month) beginning at age 85 for a longevity annuity cost of about 

What is a longevity annuity?

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.

What does annuity mean in the context of life insurance?

An annuity is a long term investment that is issued by an insurance company designed to help protect you from the risk of outliving your income. Through annuitization, your purchase payments (what you contribute) are converted into periodic payments that can last for life.

What insurance companies sell the most annuities?

Continue reading to find out who the top individual annuity sales are and how they ranked in terms of variable, fixed and fixed index sales:

  • American Equity Investment Life
  • Prudential Annuities
  • MetLife
  • Lincoln Financial Group
  • AXA US
  • TIAA
  • Allianz Life of North America
  • New York Life