Deferred fixed annuity sales grew by close to 60% last year, according to an article by Janet Kidd Stewart in the Chicago Tribune. It’s really no surprise as life expectancies continue to rise and many people’s life savings dwindle. Northwestern Mutual Life Insurance Company actually has a calculator on their website to estimate your life expectancy, which can help determine how long you need to finance. A one-time lump sum investment is paid out monthly starting at a date in the future with deferred fixed annuities.
Here are two examples of the updates being made. The Hartford Life Insurance Company updated their Income Annuity last year by adding the ability to both choose the date payments begin and some option to change that date. New York Life Insurance company added “The Changing Needs Option” rider onto its immediate annuity product. This rider gives investors the option to add to their initial payment by up to 5 times if they need to in the future. They can also decrease the amount by half; both do have a fee attached. These updates are meant to help ensure that you do not outlive your finances.