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Annuity In Longevity Insurance

By Jana Lynn

This insurance annuity is meant to provide income later in life after the policy holder attains a certain age giving an assurance of income later on in life. It is important to understand therefore how it works.

About longevity Insurance

This kind of insurance is meant to provide some form of income after retirement when one gets to a certain age (80+). This alleviates any worries that come when people retire and feel that they will outlive any savings or investments they have made as they grow older. People who look at this option are those who are approaching retirement and who have some extra money that they can set aside for future use.

What does longevity insurance involve?

Signing up for this kind of insurance basically means that you buy deferred annuity which will later on in life provide you with income. Normally, this kind of purchase is made by people who are nearing retirement age wherefrom payments which will be made to them start from the age of 80+. This is a guarantee that they will having some money set aside for them in the near future when worries such as increased spending or depletion of retirement savings engulf them.

The insured normally makes one lump sum payment in order to procure the annuity. It is cheaper to buy the insurance on a deferred basis than an immediate annuity. This is because the payments don’t normally start until a number of years elapse. The good thing about this insurance is that you can make arrangements to start getting payments sooner before you attain the 80+ age limit when most products will not pay until the policy holder attains the said age.

Why is longevity insurance popular?

Since the life expectancy rate is rising, some seniors are left with many years of retirement to fund. On the other hand, many people have not saved enough to cater for their needs as long as they will be privileged to live. Also, some people fear that as they grow older their expenses might rise. For example healthcare’s costs may differ at 80 as compared to what it may be at 60.

Why is longevity Insurance important

Basically longevity insurance only works if at all it will give some form of return after an investment. In regular policies, one may not have to be paid if he happens to dies before he reaches the target age. When it comes to setting up a policy that will leave death benefits or will pay early, the initial costs will have to increase. Additionally it may be quite a task to find the kind of money required for such a policy when one nears retirement.

Things to put into consideration before purchasing Longevity Insurance.

It is very essential to be able to understand what longevity insurance entails; its advantages and disadvantages before you set out to buy this as your retirement savings solution. For others, they may find the longevity calculator to be of help in the part of making decisions.

You can also investigate on other types of annuities that can be favorable to you in terms of funding for retirement. Long term care insurance should work out other alternatives if the main concern is rising expenses in the health care system.

Jana Lynn is frelance writer, who has been publishing diffrent articles on a number of subjects. You can also read her latest article about White wicker baskets and Wicker storage baskets on her webiste.

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Article Citation
MLA Style Citation:
Lynn, Jana "Annuity In Longevity Insurance." Annuity In Longevity Insurance. 1 Jul. 2010. 20 Feb 2015 <>.

APA Style Citation:
Lynn, J (2010, July 1). Annuity In Longevity Insurance. Retrieved February 20, 2015, from

Chicago Style Citation:
Lynn, Jana "Annuity In Longevity Insurance"

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