So, have you heard about the new, exciting, cutting-edge "Longevity Insurance" plan?
Here's how it works:
You take a lump sum of money (say, from an under-performing CD) and put it in one of these newfangled "longevity annuities." After a while (say, 30 years), it begins to pay out a lifetime stream of income. Now, if you die before you get to that magic time 3 decades hence, well, you're outta luck (unless you elected one of those innovative "non-forfeiture options").
I know what you're thinking: "Henry, this bleeding edge, tech-driven concept sounds vaguely familiar. Why is that?"
That's because it's also known as a deferred annuity - a vehicle that's been around since the dawn of time.
Are they a good idea? Maybe so, maybe not. Are they a new idea?
Not on your life.
Here's how it works:
You take a lump sum of money (say, from an under-performing CD) and put it in one of these newfangled "longevity annuities." After a while (say, 30 years), it begins to pay out a lifetime stream of income. Now, if you die before you get to that magic time 3 decades hence, well, you're outta luck (unless you elected one of those innovative "non-forfeiture options").
I know what you're thinking: "Henry, this bleeding edge, tech-driven concept sounds vaguely familiar. Why is that?"
That's because it's also known as a deferred annuity - a vehicle that's been around since the dawn of time.
Are they a good idea? Maybe so, maybe not. Are they a new idea?
Not on your life.
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