Key Things to Consider
There is never an urgency to buy an annuity, and it’s important to take your time to fully understand the contractual guarantees before signing that application. Below are some important points to consider if you are thinking about buying a longevity annuity.
Longevity Annuity Product Specifics
• No annual fees
• Defer as short as two years and as long as 45 years with some carriers
• Most contracts have specific provisions that allow money to be added to the contract during the deferral years
• Can be set up jointly with your spouse
• Available for use in both IRA and non-IRA accounts
• 100% of the premium goes to your listed beneficiary(ies) if you die during the deferral period
• COLA (cost of living adjustment) annual increases to the income stream for the life of the policy can be added at the time of application
Other Key Factors to Consider
• Current interest rates
• Laddering strategies
• Carrier strength
• How you choose to structure the contractual payout
→ Stan Haithcock aka Stan The Annuity Man, is an independent annuity agent and nationally recognized annuity expert.