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Life only annuities
Old 10-10-2004, 03:46 PM   #1
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Life only annuities

I've read alittle about life only annuities and from what I understand they will pay you x amount of dollars for as long as you live. If you die the insurance company keeps the money.

I believe the payment would be higher than a regular annuity since there are no beneficiary payments.
These may be worth considering for someone who is concerned about about out living their money and is not concerned about leaving a big estate.

Is anyone familiar with these annuities?


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Re: Life only annuities
Old 10-11-2004, 06:21 AM   #2
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Re: Life only annuities

You have accurately described the product. Some people buy life annuities with a portion of their assets to be sure of a bedrock layer of income and then invest the rest.

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Re: Life only annuities
Old 10-11-2004, 07:31 AM   #3
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Re: Life only annuities

For GTM:

You can check everything out and get quotes by visiting Vanguard's Retirement Center. I followed this sequence of links.

Most likely, you are interested in a Vanguard Lifetime Income Program. To come up with an example, I requested a quote with information similar to my own. I selected a $500000 one-time balance with payments beginning on January 1, 2005. I assumed the use of Non-qualified (i.e., after tax) funds. I selected a Life Only policy for a single male of an age close to 59. I had the payments increase by 3% per year as a hedge against inflation.

I received a quote that my annuity payments would start at $2112.62 per month.

I believe that TIAA-CREF offers low fee annuities as well as Vanguard.

Have fun.

John R.
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Re: Life only annuities
Old 10-11-2004, 09:19 AM   #4
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Re: Life only annuities

I have been monitoring "immediate annuities" as well.
They are very sensitive to long term interest rates so
you might want to wait until long rates go up as I am


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Re: Life only annuities
Old 10-11-2004, 01:44 PM   #5
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Re: Life only annuities

Thanks for the links JWR, that is a great site.
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