longevity insurance

longevity insurance definition - business

longevity insurance

A financial product that is a combination of a deferred annuity and an immediate annuity. Like a deferred annuity, longevity insurance pays a lifetime income beginning at a specified age. Like an immediate annuity, payments to be received are determined at the time of the investment. For example, an individual might purchase longevity insurance that pays $5,000 per month beginning at age 80. Longevity insurance offers no death benefit and is designed for individuals who expect to live a long life but are concerned they will run out of money.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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