by John Darer CLU ChFC CSSC RSP
"Very long lives are not the distant privilege of remote future generations -- very long lives are the probable destiny of most people alive now in developed countries," Kaare Christensen of the Danish Aging Research Center University of Southern Denmark, Denmark, and colleagues. wrote on Friday in a study published in The Lancet Vol 374, Issue 9696 pp1196-1208 3 October 2009.
A key question raised in the study was, are increases in life expectancy accompanied by a concurrent postponement of functional limitations and disability? They say the answer is still open, but research suggests that ageing (sic- US) processes are modifiable and that people are living longer without severe disability.
The researchers said that "should life expectancy in developed countries continue to improve at the same rate" (as it didfor the 20th century... +30 years increase in life expectancy over the course of the century), "most babies born in rich nations since 2000 can expect to live to 100 years"
- What is the impact on personalinjury settlement planning for plaintiffs?
- How will a settlement planner make protecting against longevity risk a compelling decision in a "cash now" society?
- What skills will tomorrow's settlement planner need?
- What is the long term impact of this information on in force structured settlement annuity business for insurance companies?
- Does this research portend a greater demand for longevity products, including structured settlement annuities and deferred income annuities, even before taking into into account future interest rate increases and tax increases?
- What new products are being developed to deal the added longevity?
- We've seen several annuity issuers withdraw from the settlement industry in the past few years. What new entrants will fill the longevity risk gap? Aviva for example had carved out a nice niche with the older age claimants.
- The Dissipation Myth Bab-oons are obsessed with the validity of squandering plaintiff theory.It is perfectly logical to hypothesize that failure to take care of longevity risk my
cause dissipation To what extent have those individuals considered the effect of longevity on dissipation? To what extent have those individuals considered longevity risk in terms of structured settlement public policy?
- What could regulators and legislators be doing to address this issue?
- What could the National Structured Settlement Trade Association and its members be doing to increase financial literacy about longevity risk?