|
09-03-2021, 02:03 PM
|
#1
|
Recycles dryer sheets
Join Date: Sep 2020
Location: Tampa, FL
Posts: 173
|
Longevity Insurance?
Have been reading a bit about longevity insurance. Payments generally don't kick in until about age 85. Opinions please.
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
09-03-2021, 02:23 PM
|
#2
|
Thinks s/he gets paid by the post
Join Date: Aug 2018
Posts: 1,020
|
My philosophy is that insurance should usually be considered only for risks that a person cannot afford to cover on their own, or would prefer not to cover on their own. Or for when required by law.
Are your finances in a condition where you think you need it? How likely is it that you will live long enough to make it worthwhile?
|
|
|
09-03-2021, 03:31 PM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,228
|
Deferring SS to age 70 is the lowest cost longevity insurance I know of.
I don't want to lock in on any kind of annuity right now at these low interest rates. If rates go back up I will reconsider. An SPIA is widely touted here as the least confusing and lowest expense kind of annuity. So far my light research on this agrees, but I plan to do more. At 59 I may be too young to buy an SPIA optimally anyway.
I haven't heard of any where the payment doesn't kick in until 85. You'll have to fill us in on what kind of longevity insurance you are looking at. My understanding is that you can set it up to turn it on annuities whenever you want, but again my research is light. I know my dad has one that he can decide whenever to turn it on. It has a life insurance benefit so that's a benefit of not collecting now. But I think they are going to cash it in since it is beyond any surrender fee, and they need more money for memory care now.
I can't speak for anyone else, but I feel that my family history is good and my health is good, so some longevity insurance is probably worthwhile. If I die early, oh well, my son won't get quite as much, and I'm sure I have enough to handle a shorter retirement, so losing the annuity bet won't sink me. But the insurance could be helpful with a longer life span. Maybe it would work against you if your LTC strategy is Medicaid. I don't know how that would factor in but it's something to look into before buying.
|
|
|
09-03-2021, 03:48 PM
|
#4
|
Full time employment: Posting here.
Join Date: Nov 2015
Posts: 706
|
I think a QLAC is a type of DIA that basically delays a portion of one's RMD's to 85.
|
|
|
09-03-2021, 04:28 PM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,228
|
Ok, yeah, that must be it. 85 is the latest you can defer payments. Looks like you can start as early as 75 if you want.
|
|
|
09-03-2021, 09:02 PM
|
#6
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2016
Location: Northern Virginia
Posts: 7,591
|
SS is our longevity insurance.
|
|
|
09-04-2021, 10:29 PM
|
#7
|
gone traveling
Join Date: Aug 2020
Posts: 682
|
A strong equity allocation is longevity insurance, combined with LBYM and SS.
|
|
|
09-05-2021, 06:34 AM
|
#8
|
Thinks s/he gets paid by the post
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,622
|
Quote:
Originally Posted by chassis
A strong equity allocation is longevity insurance, combined with LBYM and SS.
|
How strong?
VW
__________________
Retired May 13th(Friday) 2016 at age 61.
|
|
|
09-05-2021, 07:01 AM
|
#9
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2014
Posts: 7,373
|
I'm 68, have decided to take SS at 69 and I'm probably 65% in equities now.
I'd looked at longevity insurance, which is basically a deferred annuity, and it just seems to be a big chunk of money up front. I'm a retired actuary and most annuities scare me because they have too many moving parts- this one is more straightforward but it still has the insurance company's profit and expenses included.
And, as RunningBum said, with low interest rates this is a bad time to buy annuities.
|
|
|
09-05-2021, 08:43 AM
|
#10
|
Moderator
Join Date: Oct 2010
Posts: 10,725
|
Maybe the era of the tontine should return, this time without participants knowing who the others are (and picking them off)
|
|
|
09-05-2021, 08:52 AM
|
#11
|
Thinks s/he gets paid by the post
Join Date: Jun 2014
Posts: 1,192
|
Our longevity plan is based on SS at 70 and worst case scenario, utilizing our home equity as thats not factored in anywhere.
|
|
|
09-05-2021, 09:57 AM
|
#12
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,265
|
SS at 70. The best deal I could find on a COLA'd longevity insurance and annuity plan.
__________________
Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
|
|
|
09-05-2021, 04:47 PM
|
#13
|
Thinks s/he gets paid by the post
Join Date: Jun 2017
Location: Western NC
Posts: 4,633
|
A hefty life insurance policy on your significant other, then "Strangers on a Train."
|
|
|
09-05-2021, 08:37 PM
|
#14
|
gone traveling
Join Date: Aug 2020
Posts: 682
|
Quote:
Originally Posted by VanWinkle
How strong?
VW
|
@VanWinkle as strong as the individual can stomach, then a bit stronger than that.
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|