I know you've heard me preach a number of times about the peril of outliving one's retirement. Well, leave it to the insurance industry to help solve this problem.
Unless you're a psychic, you don't know when you're going to die. With that said, if you make it to the traditional retirement age of 65, then you've got a good chance of living into your mid 80's for both men and women. The average age of 78 is a statistical farce because it throws in infant mortalities as well. If you're reading this, congratulations you made it past that stage! When my grandfather was born, the average life expectancy was 50. He died when he was 95!
However, most people never planned to live past that age. Longevity Insurance protects you from the age of 85 till death. One out of every four 65-year-olds will live past the age of 90 and one out of 10 will live past age 95, according to the Social Security Administration. This is a product that you should look at purchasing while you're still young enough to afford it, but not so close to retirement that you can't.
You need to start taking a look at it if you're around 50 in order to plan your course, but seriously start to consider it if you're in your mid 50's. And have it definitely bought by the time you're 60, hopefully sooner.
If you know that you will conservatively have enough money to last you for the next 30 years, then you don't need this financial product. However, if you're in a tentative situation then you need to look at this very closely. Especially if you are in good health and you have a family history of longevity.
Longevity insurance is essentially an annuity and the costs of an annuity can vary drastically depending upon how you want it structured. Which is why you need to spend a few years look around in order to find the best deal.
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