FloridaJim57
Recycles dryer sheets
Have been reading a bit about longevity insurance. Payments generally don't kick in until about age 85. Opinions please.
Longevity Insurance?
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Lewis Clark
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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?
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?
RunningBum
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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.
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.
RunningBum
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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.
Montecfo
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SS is our longevity insurance.
VanWinkle
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athena53
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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.
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.
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Maybe the era of the tontine should return, this time without participants knowing who the others are (and picking them off) 
Chuckanut
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SS at 70. The best deal I could find on a COLA'd longevity insurance and annuity plan.
ncbill
Thinks s/he gets paid by the post
Maybe the era of the tontine should return, this time without participants knowing who the others are (and picking them off)
A hefty life insurance policy on your significant other, then "Strangers on a Train."
@VanWinkle as strong as the individual can stomach, then a bit stronger than that.
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