• Smart Money: If you are someone who loses sleep over the prospect of outliving your savings, you may want to consider longevity insurance.

  Extend Your Retirement Savings Smart Money, June 14, 2006

• Smart Money: ‘Longevity insurance is a particularly effective product if you couple it with an investment strategy,’ says Chris Raham, a longevity expert with Ernst & Young. His advice: Use 10% to 15% of your assets to purchase a longevity product and leave the rest in your portfolio to provide income until it kicks in. With a guaranteed income starting at a predetermined point in time, you'll basically take the biggest unknown out of your retirement-planning strategy, namely how long your money should last. You could be more aggressive with your investments and fine-tune the size of your withdrawals without the fear of running out of money.

  Extend Your Retirement Savings Smart Money, June 14, 2006

• Business Week: ‘If you put a small slice of your assets, say 10% into a longevity insurance product at age 60 or 65, you'll be able to spend about 20% more throughout retirement than if you were to rely solely on bonds or regular annuities for income’, says Jason Scott, managing director of retiree research at Financial Engines, a Palo Alto adviser to 401(k) participants. You may even be able to generate a fatter nest egg. That's because with late-in-life dollars guaranteed, you may feel comfortable investing a higher portion of your portfolio in equities, which have out performed bonds over the long run.

  More Dollars Late In Life. A longevity policy allows you to spend more freely in retirement Business Week, July 9, 2007

• FinancialPlanning.com: Without longevity insurance, even well-diversified portfolios cannot really guarantee lifetime income. The two factors that can't be controlled by careful portfolio construction are market catastrophe and extended lifespan. Unlikely as it is, the markets could tank so badly, and for so long, that the most carefully diversified portfolio melts away. Also unlikely, a client could live so long, and/or could require so much unanticipated income (in the case of catastrophic illness, for example) that he or she could completely draw down a portfolio before death occurs, leaving him or her dependent on others, with legacy goals unmet.

  Longevity Insurance. Wealthy baby boomers few outliving their money, but they want more than immediate annuities. FinancialPlanning.com, February 1, 2007

• The Wall Street Journal: With longevity insurance, you hand over a lump sum at, say, age 65, in return for guaranteed lifetime income starting at age 85 --- assuming you live that long. ‘Nobody knows how long they will live’ notes Victor Freeman, author of The Loafer's Guide to Successful Retirement and Slow Cooking. ‘I'm looking at longevity insurance for myself. I see it a pure income insurance.’

  Make It to the End With Money to Spare. The Wall Street Journal, November 4, 2007

• Registered Rep: If you don't provide the retirement planning services your clients want, they may look elsewhere for financial advice. Three out of four investors added or switched advisors within 15 years of retirement, according to the Fidelity report, which cited McKinsey & Co. as its source for the figure.
  
  In addition to knowing your client's expectations and financial backgrounds, providing retirement income planning demands an understanding of key risks facing retirees, such as longevity, health care expenses, inflation, asset allocation and withdrawal rate. The report showed that 60 percent of Americans between 55 and 70 want to discuss critical illness insurance, long-term care, longevity insurance and/or reverse mortgages with their advisor.

  Advisors Falling Short on Retirement Income Planning Registered Rep, May 9, 2007

* 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.

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