New Annuity Starts Lifetime Income Stream at Age 91 or Later
MassMutual's Haven Life unit developed the product.
Haven Life Insurance Agency is offering a new defense against longevity risk: a deferred income annuity contract with benefits that start when the annuitant is at least 91 years old.
Haven Life — a web-based agency arm of Massachusetts Life Insurance Company — is aiming the AgeUp annuity contract at working-age adults who want to protect their parents against the risk of outliving their assets.
(Related: Deferred Income Annuities: Latest Research on Benefits, Laws)
MassMutual acquired another insurtech startup, Quilt, in August 2018.
MassMutual had the team that came over with Quilt shift to developing annuities. The AgeUp product is a result of the Quilt alumni annuity development effort.
Adult children can buy the annuities now online, through the Haven Life system, with the monthly premium payments starting at $25.
For now, the adult children must pay the premiums, and the adult children will get the payments once the parents reach the contract trigger age, Haven Life says.
Haven Life says it will start letting consumers in their 60s and 70s buy the contracts directly in 2020.
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