[aljetmet]

Thought this might be interesting to y'all.

At age 65 you can invest $50,000. You do not collect a dime until age 85.
After age 85 you collect $35,200 per year for life.
Unfotunately if for some reason you do not make it, the casino err the insurance company keeps your money.


Understand Metlife is willing to accept this type of investment...

Maybe some of your neighbors are willing to invest in you !

[Tbugs]

Sounds like someone just had an interesting talk with an insurance agent. Hard to believe but there are a lot of seniors duped into annuities.

[aljetmet]

Actually, I was at fidelity.com and found an annuity article.
I'm not a fan of annuities. Just like I'm not a fan of whole life insurance.
As a person with a pre-existing it's not for me. Just finished reading that thread. OMG!

[rjm1cc]

The idea is that you budget your savings to last until age 85 and if you live past that age the insurance pays off. Your alternative is to budget your savings to last to say 100. The idea is good, the question is does it fit your needs and are you willing to pay the fees. There ae also versions that can be tieded into nursing home care. For me the expense was to high to fit my needs but you shoud consider the policies as part of your planning process.

[StarbuckSammy]

rjm1cc is right...it is a good idea. It depends on your needs. Who knows how long you will live...all of us plan on our assets lasting,but lets say I am 65 and wish to use up all my assets to age 85. Now that is a plan. If I live to 80...not a problem. If I make it to 85, all assets are gone but I have the $35000 per year pluss SS . It does make sense.

[KayakerNC]

Originally Posted by STARBUCKSSAMMY

rjm1cc is right...it is a good idea. It depends on your needs. Who knows how long you will live...all of us plan on our assets lasting,but lets say I am 65 and wish to use up all my assets to age 85. Now that is a plan. If I live to 80...not a problem. If I make it to 85, all assets are gone but I have the $35000 per year pluss SS . It does make sense.

Guess what the Insurance Company is betting on.
From the Create a Paycheck article;
Average life expectancy for a 65-year-old male is 84.2 years.

Create a paycheck with an annuity
https://news.fidelity.com/news/artic...ting-annuities
New strategies to lock in steady income for life
https://news.fidelity.com/news/artic...ting-annuities
Income Security in Your 80s, Bought in Your 60s
http://www.nytimes.com/2010/11/05/bu...pagewanted=all

[rjm1cc]

"Guess what the Insurance Company is betting on.
From the Create a Paycheck article;
Average life expectancy for a 65-year-old male is 84.2 years."

Average means 1/2. That would say the insurance company is counting on 1/2 of its policy holders dyeing and to use that money to pay the other half that lived.
This means if you think your life expectancy is less than 84.2 years then don't buy.

If I was buying the policy I would be planning on being part of the 1/2 that won the bet. Again the policy is designed to share the risk of running out of money and like any other business the life insurance company keeps part of the dollars you pay into it to pay their employees and stockholders.

[katezbox]

Originally Posted by rjm1cc

"Guess what the Insurance Company is betting on.
From the Create a Paycheck article;
Average life expectancy for a 65-year-old male is 84.2 years."

Average means 1/2. That would say the insurance company is counting on 1/2 of its policy holders dyeing and to use that money to pay the other half that lived.
This means if you think your life expectancy is less than 84.2 years then don't buy.

If I was buying the policy I would be planning on being part of the 1/2 that won the bet. Again the policy is designed to share the risk of running out of money and like any other business the life insurance company keeps part of the dollars you pay into it to pay their employees and stockholders.

Pretty much what you are paying for is peace of mind. I know many worry what will happen if their $$ runs out. I would put this in the same category as paying off your mortgage. For many it makes no sense from a financial point of view (given our current tax structure), yet knowing that you own a home free and clear is a great way to get a good night's sleep.

The insurance companies would not be selling this product if they were likely to lose, but really.....do you care about how many people don't make it to 85? No...you care about you! I think this may be helpful for those folks who have one spouse with a pension and no survivor benefits...it makes sure the survivor continues to have income.