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chinaco · 05-20-2008, 02:39 AM

Some good ideas on using annuities.

In the next few years new Immediate Annuity features and options will be available (more common) such as cash-out early, more elaborate inflation protection, etc. Same with Life Insurance to cover LTC and other life events. Of course, the issues with Life Insurance is anti-selection... by the time you know you need it... it is too late and you are not insurable.

But all of those features (protection and flexibility) will come with a cost.

I like the idea of Longevity Insurance... not sure if it is cost effective. But since money is pooled, one would expect it to be. If one lives to 90, they get the face amount of the policy... say $500k or $250 with a CPI inflater (product backed with long-term CIPS or TIPS). This is the reverse of life insurance... betting you will die early.

05-20-2008, 02:39 AM	#17
chinaco Thinks s/he gets paid by the post Join Date: Feb 2007 Posts: 3,052	Some good ideas on using annuities. In the next few years new Immediate Annuity features and options will be available (more common) such as cash-out early, more elaborate inflation protection, etc. Same with Life Insurance to cover LTC and other life events. Of course, the issues with Life Insurance is anti-selection... by the time you know you need it... it is too late and you are not insurable. But all of those features (protection and flexibility) will come with a cost. I like the idea of Longevity Insurance... not sure if it is cost effective. But since money is pooled, one would expect it to be. If one lives to 90, they get the face amount of the policy... say $500k or $250 with a CPI inflater (product backed with long-term CIPS or TIPS). This is the reverse of life insurance... betting you will die early. __________________ Planned FIRE Summer 2011 Disclaimer: I make no warranty or guarantee about the accuracy or completeness of this information. I am not a financial planner, my comments only represent my opinion. Last edited by chinaco; 05-20-2008 at 02:45 AM.