What is Longevity Insurance?

Longevity insurance is a type of insurance product that you can buy a that will pay if you live to be a certain age. Here are the basics of longevity insurance and how you can use it to your advantage.

Longevity Insurance

This type of life insurance policy will start to pay you an annuity payment once you reach a particular age. In most cases, you have to live to be at least 85 years old in order to start collecting annuity payments. This type of insurance is purchased in order to hedge against the possibility of living much longer than the average lifespan.


This type of insurance policy can be beneficial because it will allow you to avoid worrying about using up your retirement resources. Many individuals live cautiously throughout retirement because they do not know how long they are going to live. With longevity insurance, you will know exactly how long you need to plan for. You will only need your retirement funds to last until you reach the age of 85. If you continue living beyond this point, the longevity insurance is going to kick in and pay for the rest of your life. This can be beneficial to help offset the cost of expensive medical treatments as well.

What are the disadvantages of longevity insurance?

Longevity insurance is a type of insurance plan that will pay you if you live beyond a certain age. One of the disadvantages of this plan is that there is a good chance that you will never get to use it. Many times, you have to live longer than 85 years before you can start collecting payments. The average lifespan is lower than that, which means that the odds are stacked against you. Another disadvantage is that the premiums tend to be a little bit high for the benefits that you can receive from the policy.

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