Life only annuities

GTM · 10-10-2004, 04:46 PM

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?

brewer12345 · 10-11-2004, 07:21 AM

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.

JWR1945 · 10-11-2004, 08:31 AM

For GTM:

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

http://www.vanguard.com/

http://www.vanguard.com/VGApp/hnw/PersonalHome

http://flagship3.vanguard.com/web/pl...=spotlighton04

http://flagship3.vanguard.com/web/co...nuitiesOV.html

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.

charlie · 10-11-2004, 10:19 AM

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
doing.

Cheers,

Charlie

Beachbumz · 10-11-2004, 02:44 PM

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

10-10-2004, 04:46 PM	#1
GTM Recycles dryer sheets Join Date: Oct 2004 Posts: 260	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?

10-11-2004, 07:21 AM	#2
brewer12345 Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Mar 2003 Posts: 9,249	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. __________________ “When you realize that you are one of the rare few who observe moral principles in their relationships with others, there is a temptation to sink into amorality, not out of conviction or pleasure but simply to avoid further pain, because there is no greater suffering than being an angel in hell, whereas a devil feels at home wherever he goes.” – Martin Page, How I Became Stupid

10-11-2004, 08:31 AM	#3
JWR1945 Recycles dryer sheets Join Date: Dec 2002 Posts: 290	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. http://www.vanguard.com/ http://www.vanguard.com/VGApp/hnw/PersonalHome http://flagship3.vanguard.com/web/pl...=spotlighton04 http://flagship3.vanguard.com/web/co...nuitiesOV.html 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.

10-11-2004, 10:19 AM	#4
charlie Thinks s/he gets paid by the post Join Date: Mar 2004 Location: Dallas Posts: 1,069	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 doing. Cheers, Charlie

10-11-2004, 02:44 PM	#5
Beachbumz Recycles dryer sheets Join Date: Aug 2004 Posts: 218	Re: Life only annuities Thanks for the links JWR, that is a great site. The bum __________________ Life is good.

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