FAQs

Who is LongevityQuotes.com?

LongevityQuotes.com is one of the first consulting firms specializing in financial products that help address the issues related to increased longevity. 


What happens if the policyholder dies after reaching their payment start date? 

Payments from the policy stop when the policyholder dies. However, if at the time of death the policyholder has not received payments at least equal to the original premium, then the difference will be paid to the beneficiary, executors, assignees or trustees of the policyholder’s estate.


What happens if the policyholder dies prior to the payment start date? 

At purchase the owner has the option to purchase a death benefit that would provide the greater of:

  • 90% of the purchase payment compounded at 3% per contract year or,
  • 100% of the purchase payment

If the owner has not elected the optional dealth benefit, then no death benefit or continued annuity payments will be paid. Additionally, no premium will be returened and the contract is terminated. 


What are the tax benefits of the longevity annuity?

Payments will be reported as ordinary income in the year they are paid. For non-qualified contracts an exclusion ratio will apply to the benefit payments. The exclusion ratio determines which portion of an annuity distribution is considered earnings and which portion is a return of your original premium. Only the portion cosisting of earnings is taxible.  

In addition, the tax treatment of the payments will depend on each policyholder’s personal circumstances and the relevant tax rules at the time. Currently for US residents, a portion of the payments under the Policy is deemed to be gain on principal and therefore is subject to US Income Tax.


What does ‘payment start date’ mean?

Payment start date is the date that policyholders begin receiving payments from the Plan.


Can a policyholder open more than one plan?

Yes, a policyholder can open more than one policy as long as the total sum of investment across all policies does not exceed $1,000,000 per policyholder.


Longevity Annuity Scenario

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


How can I apply for Longevity Insurance?

Longevity Insurance is only available through selected Financial Advisers. To begin the process please fill out the free quote form below:


What are the annual charges on the policy?

There are annual administrative fees charged and related expenses which vary depending on the chosen Plan, and are deducted on an annual basis. These charges may vary over time.


Longevity annuities as an asset-protection product

Since Longevity annuities provide a guaranteed stream of income that you can’t outlive, starting at a predetermined point in your retirement, you can plan your spending, knowing that your later years are covered.  So instead of selling your home to retire, you can rest assured that the longevity annuity will help you continue to pay your mortgage late in life and provide the flexibility you are looking for in those early retirement years.


When do income payments start?

When applying for Longevity Insurance, you may choose to begin receiving payments from the Plan at any predetermined age between 70 and 85.


What are the minimum and maximum premium amounts?

  • The minimum premium is typically $10,000.
  • The maximum premium is typically $1,000,000 per Planholder.

What are the minimum and maximum ages to open a Longevity Annuity?

  • The minimum start age is 18.
  • The maximum start age is 75.

How longevity annuities can be an alternative to long term care insurance?

If you are unable to medically qualify for Long Term Care (LTC) insurance or prefer to avoid paying expensive premiums for insurance you may never use, the Longevity Annuity may be the perfect solution for you. 

Since the Longevity Annuity provides a guaranteed stream of income to begin at age 70, 75, 80, or 85 (whichever one you choose), you may apply the income received from the Longevity Annuity toward the cost of care at that time. 

Furthermore, you could transfer assets to your loved ones while receiving care, since the income payment of the Longevity Annuity will continue during any penalty period imposed by Medicaid as outlined in the Deficit Reduction Act of 2006. 


How can Longevity Annuities supplement your 401K?

A new twist in retirement planning is taking hold: financial services companies are offering immediate annuities and longevity insurance—a deferred annuity—as an option in 401(k) plans.

The trend of using annuities and longevity insurance has heated up over the last few years as more retirees and those approaching retirement search for income generating investment solutions. “With longevity insurance or an immediate annuity, the client is saying they want to take payments in the form of an income stream either now or at a later point in time.

Adding a guaranteed income product to the mix at both ends of the spectrum—while both saving for retirement and then taking income while in retirement—can help decrease investment risk while, potentially, increasing investment return over the longer term.

While group annuity platforms have been a mainstay of the 401(k) and defined benefit world for some time, the new approach taking hold now is “treating a fixed annuity or longevity insurance as a distinct investment option [in 401(k) plans] and as a platform unto itself.” For instance, the plan participant could choose from an array of mutual fund options in a plan and also be able to allocate a certain portion of their money to the insurance contract.


Definition of Methuselah

Me·thu·se·lah [muhthoo-zuh-luh, thooz-luh]

 -noun

  1. a patriarch who lived 969 years. Gen. 5:27.
  2. an extremely old man.
  3. a very large wine bottle holding 61/2 qt. (6 l).

How can a policyholder find out the value of their policy?  

The policy holder will receive an annual statement from the selected insurance company, detailing the current value of their policy.


What is the initial charge on the contract?

The initial charge may vary depending on the original premium amount and can be waived once the policy reaches a predetermined threshold.


Can a policyholder switch plan options?  

Some plans allow policyholders to change options within the plan. Other policies are fixed, and therefore do not offer the ability to change your initial selections.


Can policyholders add funds to a previously opened plan?

Yes, Plans typically allow you to add funds prior to reaching the payout period.


Can money be taken out of the Plan prior to the payment start date?

Yes, but there will be surrender charges to do so.  This is because the policy is designed as a long-term investment and requires time to achieve its objective.


Can the Plan be cancelled?

Yes, the Policyholder has 30 days from the date they receive the Plan to return the Cancellation Notice and receive a refund on their Plan as part of the “Free Look Period.” The Planholder will receive his or her orginal premium less any administrative fees that occurred between commencement and cancellation.


Can the payment start date be changed?

Depending upon the Plan you choose, you may have some flexibility to change the payment start date, and can typically open an additional policy with a payment start date that differs from the initial Plan.


How frequent are the income payments?

You can choose an annual, semi-annual, quarterly, or monthly payment frequency.


How can income be guaranteed for life?

By annuitizing all or part of your annuity assets. This feature, unique to annuities, is an important aspect in retirement planning whether you plan on retiring now or some time in the future.  Payment is based upon the claims paying ability of the sponsoring company.


What does the word annuitize mean?

To receive regular payments at regular time intervals for a lifetime or for a specific period of time.