Common Benefits

Here’s a summary of what a fixed longevity annuity can bring to your retirement portfolio: 

  • Less Work Dependency

    Many people utilize longevity annuities to provide income in their later years, so they can reduce their dependency on work, and spend more time doing the things they enjoy and less time in the office. 

  • Ideal for Estate Planning

    If you choose the death benefit or return of premium option in your longevity annuity, proceeds will pass directly to your beneficiaries without the delay, expense, and publicity of probate in most states. If you’ve ever had a loved one’s estate go through this time-consuming legal process, you know just what kind of advantage this is. 

  • The Power of Tax Deferral

    Because you do not pay taxes on earnings every year, your annuity is able to work harder thanks to tax-deferral. You will only have to pay taxes on the portion of your withdrawal that is considered earnings.  The remaining portion of the withdrawal is classified as a return of principal and is therefore not taxed. 

  • No Affect on Social Security Benefits

    Longevity Annuities do not affect the taxability of Social Security benefits like bond, CD, and other investment income does.


    High Contribution Limit

    Contributions to other retirement savings vehicles, like 401(k)s and Individual Retirement Accounts, are strictly limited. Currently, you can contribute up to $1,000,000 in a Longevity Annuity.

  • Other Features

    Longevity Annuities are easy to establish and always come with a “free look period.” Your state of residence or the annuity contract will define a length of time (usually 30 days) allowing you to cancel your contract if you decide it’s not right for you.

    You can even exchange older, non-performing annuities into a newer fixed longevity annuity with no tax consequences, thanks to Section 1035 of the Internal Revenue Code.
    If you are a conservative investor looking for a way to protect yourself from outliving your assets, then a longevity annuity may be the answer for you.