A deferred income annuity (DIA), also called a longevity annuity, is a type of annuity contract that is designed to provide lifetime guaranteed monthly income at a predetermined future target date. Its primary purpose is to protect against outliving one’s assets at advanced ages, in the most efficient manner possible.
With a deferred income / longevity annuity, you know the exact amount of lifetime income you will receive and the exact date on which you will begin receiving it. Also, payments can be based on either one individual life, or on joint lives (typically a spouse).
In exchange for a lump sum payment now, or a series of premium deposits over time, the issuing insurance company guarantees a lifetime income to begin at an age (typically 70-85) defined in advance by the contract owner. The longer the delay and the more advanced the age before income payments begin, the more significant the payout will be when calculated as a percentage of the initial deposit premium.
Please watch this short video for additional information and details regarding Deferred Income / Longevity Annuities, and how using them can guarantee future lifetime income to better secure your retirement:
One way retirees are using deferred income annuities to secure their financial futures, is to allocate a portion of their investable assets towards the purchase of a DIA to provide adequate lifetime retirement income beginning at age 80 or 85. Then, with the balance of their retirement funds, they only need to create an income plan that gets them through from their current age to age 80 or 85, when the deferred income annuity payments kick-in. This has the benefit of being a defined period of time, rather than the uncertainty of trying to make their funds last for their entire lifetime, which is an unknown period of time.
Please visit our Deferred Income / Longevity Annuity Quote page to request more information and get your personalized quotes, custom tailored to your individual needs.