Longevity Insurance Increases in Popularity

The popularity of longevity insurance is on the rise. Longevity Insurance, or a deferred income annuity (DIA), helps ease retirees’ fears of outliving their savings by deferring payout for 10 to 20 years. The purchase of DIAs increased by 35% in 2014 compared to the previous year. Though three years ago this type of annuity was only available through three insurers, they can now be purchased through fifteen.

These plans provide the advantage of a set income stream for those in their later years when dementia and other concerns of being vulnerable are high. However, these plans do have disadvantages, such as tying up funds for an extended period and planning for future inflation rates can be difficult.

See Glen Ruffenach, A New Tool to Make Your Money Last, The Wall Street Journal, Jan. 12, 2015.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.