It would be wonderful and welcomed if your parents live long, healthy lives, but it could also be a financial challenge for the family. AgeUp is a solution for these unique instances, guaranteeing a steady income stream for those who live into their 90s. The deferred life annuity is the brainchild of Haven Life and issued by MassMutual, both well-respected names in the life insurance industry. Keep reading to learn more about how AgeUp works.
|Annuity Type||Death benefit and lifetime income|
|Age Payouts Begin||91-100|
AgeUp provides deferred income annuities. By purchasing a policy, you can guarantee a steady income stream for your parents (or loved ones) should they live into their 90s. Please note, AgeUp is meant to supplement retirement income, not replace it.
Monthly contributions start at $25 per month, making AgeUp much more affordable than most other annuities which often require an upfront payment of $10,000.
AgeUp provides two purchase options: death benefit or lifetime income.
- The death benefit option pays out a lower monthly amount, but paid-in contributions will be returned (less annuity fees) should your parent passes before the selected payout age.
- The lifetime income option pays out a higher monthly amount, but you’ll forfeit the refund should your parent passes before the selected payout age.
Once you select between the death benefit or lifetime income, and you purchase the policy, you won’t be able to change it. However, you are able to increase, decrease or pause your monthly premiums.
To purchase an AgeUp policy, there’s only one requirement: your parent must currently be between 50 and 75 years of age. There are no medical exams required, nor credit checks.
AgeUp pricing varies, depending on the coverage. However, pricing begins by selecting a monthly payment you can afford, which ranges from $25 to $250.
As you can see in the example above, the longer your parent waits to receive payouts, the higher the monthly payout amount. Men also receive more than women of the same age. And your parent will get a higher payout without the early death benefit.
AgeUp does not publish a fee schedule associated with its annuity. If you decide to move forward after receiving your online estimate, make sure to bring this up with an AgeUp team member before signing any paperwork.
Don’t sign an AgeUp policy until you’ve considered the following:
- It doesn’t start until 91, not when your parent hits 90.
- It reduces payouts with the early death benefit. If you want to recoup your premiums should your parent pass away before 91, you need to sacrifice some of the monthly payout.
- It is not a liquid product, which means you can’t withdraw money from your annuity, nor does it have any cash value.
- It’s not available in California, Florida and New York. But their website does state that policies will be available in California soon.
Right now, you won’t find anything like AgeUp on the market. It’s not whole life insurance, term life insurance or traditional annuities, but it is a financial buffer intended for the best-case scenario that your parent lives well into their 90s. For these instances, AgeUp is the only easy and affordable option.
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