by John Darer® CLU ChFC MSSC RSP CLTC
Longevity protection is one of the important benefits of structured settlements with lifetime benefits.
An insurance actuary recently opined about about longevity protection and structured settlement annuities:
- The claimant could make an excellent investment decision that out performs the structure in terms of IRR calculated at issue and still run out of money because they live "too long", longer than estimated.
- Life expectancy does not reflect when someone will die, it means 50% of people will die before then end of life expectancy and 50% of people will live longer, many much longer.
- The fact that life expediencies are increasing every year and there is a greater than 50% chance of outliving life expectancy. -Debbie Fickett-Wilbar
When you have a structured settlement, deferred income annuity, or a retirement annuity with a lifetime benefit option, the life insurance company that issues the structured settlement absorbs the risk of you being part of the 50% that live longer.