rescueme
Thinks s/he gets paid by the post
True, but then the total realized return would be greater than what we were willing to accept under the original contract terms. Why would one disagree with that outcome?Actually, this only guarantees a minimum IRR. The actual realized IRR will still depend upon when the latter of you passes, should one of you live beyond the guaranteed period.
However, I'm sure the insurance company knows more about average life spans (as related to computing payouts to profits) and if anything, we will not exceed the contract (in our lifetime).
We can live with a "minimum IRR". Isn't that the fear of most folks as related to an annuity? That's why we're getting a few less dollars each month to pay for additional "insurance" of a computed life policy, and ignore the oft quoted "if you pay your premium and die tomorrow, the insurance company gets all your money"...
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