There was an interesting article in Sunday's Washington Post Business Section, which talked about a new product - the Advanced Life Deferred Annuity. Basically, one makes a payment today, and the annuity kicks in at age 85. It's an insurance policy against living "too long". I haven't done a thorough analysis of the numbers in her example, but I do think it is potentially an interesting product, which, if priced competitively, could have a place in a retirement portfolio. It's basically pure "longevity insurance".
Longevity Annuity
|