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June 04, 2008

Longevity Insurance Pays People for Living a Long Life

Bellevue-based Symetra Life Insurance Company recently announced the launch of a new product to help protect retirees from outliving their savings. The Symetra Freedom Income Annuity1 functions as “longevity insurance.” It enables clients to use a small portion of current savings to buy guaranteed income for their later years of retirement, providing financial security for when they need it most.

“It now only costs you $10,000 to purchase a stream of income you cannot outlive,” says Rich Lindsay, senior vice president of Symetra’s Life and Annuities division. “That’s how cost-effective longevity insurance can be. With Symetra Freedom Income you get more guaranteed income down the road for less money up front.”

For example, if a client wants $2,500 a month for life and purchases a Symetra immediate single premium income annuity at age 85, the premium would cost about $185,000 at today’s rates.3 However, if a 65 year old client purchased the same monthly income to begin at age 85 through Symetra Freedom Income, the premium would cost around $31,000.

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Posted by Tom Troceen at 04:31 PM