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Everything Old is New Again

So, have you heard about the new, exciting, cutting-edge "Longevity Insurance" plan?

Here's how it works:

You take a lump sum of money (say, from an under-performing CD) and put it in one of these newfangled "longevity annuities." After a while (say, 30 years), it begins to pay out a lifetime stream of income. Now, if you die before you get to that magic time 3 decades hence, well, you're outta luck (unless you elected one of those innovative "non-forfeiture options").

I know what you're thinking: "Henry, this bleeding edge, tech-driven concept sounds vaguely familiar. Why is that?"

That's because it's also known as a deferred annuity - a vehicle that's been around since the dawn of time.

Are they a good idea? Maybe so, maybe not. Are they a new idea?

Not on your life.

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