Is longevity insurance the real deal, or the insurance industry equivalent of New Coke? We’ll let you decide. But The Wall Street Journal‘s Brett Arends notes advisors are suggesting longevity insurance as an annuity alternative.
“Longevity insurance, a relatively new product, is effectively an annuity that begins paying out only if you live past age 85,” he writes. “According to MetLife, which offers the product, a 65-year-old man could pay about $115,000 and receive an annual income of $100,000 when the policy kicks in 20 years later. Longevity insurance could let you retain control of your investments, finance your retirement for a set number of years and live without worrying about outliving your capital.”