Longevity Insurance Case Study #1
Meet Joe Spend-a-lot
- Joe is 60 and has accumulated a retirement nest egg of $1M. Joe has just been declared in perfect health and is planning to retire in 5 years. He is an avid golfer and wants to enjoy his early years of retirement hitting birdies on the great golf courses of the world.
- Joe wants to insure that he can spend his nest egg doing what he loves, but doesn't end up penniless after his golf game goes south.
- Joe's advisor recommends that Joe take 15% of his $1M nest egg and purchase a “longevity insurance” payout option with a start date of age 75.
- Joe will elect a 15 year deferred payment.
- At age 75, Joe will receive $4,253 per month** to cover his expenses for the rest of his life.
- Joe has $850,000 left to allocate toward living out his retirement dream for 10 years.
**Based on rates in effect on 4/1/08
For more information, please contact the Symetra Sales Center at 1-800-706-0700 or invest@symetra.com.
Longevity Insurance Case Study #2
Meet Sarah Save-a-lot
- Sarah is 68 years old and has been retired for 2 years. Despite all of her best efforts, her nest egg today stands at only $500,000.
- She is amazed at how quickly she is spending her savings; Social Security and her small pension don't go as far as she would have hoped. Her parents are still alive and are in their 90s.
- She is concerned about outliving her savings, and she would like to be able to invest a portion of her savings more aggressively
- Sarah's agent suggests she put 12% of her savings into a “longevity insurance” payout option.
- At age 85, Sarah will receive a monthly income of $3,231** guaranteed for life.
- Because her late life income is secure, her advisor recommends a moderately aggressive portfolio for a portion of her remaining assets, to give her the possibility to earn more.
**Based on rates in effect on 4/1/08
For more information, please contact the Symetra Sales Center at 1-800-706-0700 or invest@symetra.com.
Longevity Insurance Case Study #3
Meet Bob & Patty Cost-a-lot
- Bob, age 63 & Patty, age 58, are getting set to retire in 2 years. Between Social Security, both of their pensions and their personal retirement nest egg of $1M, they feel that today they are in good shape for retirement.
- However, they are concerned with the rising cost of healthcare and that inflation could drastically erode their purchasing power late in retirement.
- Their advisor recommends that they take 10% of their nest egg and purchase a “longevity insurance” payout option with payments beginning when Bob turns 80. Payments will increase annually at 3% – and will last their joint lifetime.
- A monthly income of $2,286*** will begin at age 80 and will increase at 3% per year.
- This income will supplement their social security and pension payments to offset inflation.
- They will be guaranteed an income stream that will last through both of their lives.
***Assumes Joint Life 100/66 2/3 payout without death benefit. Rates effective 4/1/08.
For more information, please contact the Symetra Sales Center at 1-800-706-0700 or invest@symetra.com.
* Longevity insurance is a concept, not the name of a product. Some states define longevity insurance as an annuity with payout option only with no death benefit.
FOR AGENT USE ONLY
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