Longevity insurance: Keep your eyes open when buyingTwo weeks ago I made mention of longevity insurance, a product drawing favor from the Obama administration as a way to offer a more secure retirement.
Wall Street has done a great job, at a great profit, of letting us know the value in 401(k)s and individual retirement accounts. But when it comes to managing that money so we don't run out before we die, the professionals' guidance falls flatter than last week's I-beam mishap on the Marquam Bridge .
Longevity insurance could help address that. This is a product that might finally be catching on, thanks to a variety of new offerings by insurers. But there are a number of risks to consider before buying longevity insurance in any form, and this isn't the best time to do so in any case.
"Now would be a lousy time to put money in, because you're going to lock in a lousy ... rate," said Alan Stonewall, owner of Northwest Actuarial Consulting in Brush Prairie, Wash.
Last year, for the first time, sales of longevity insurance topped $1 billion, according to LIMRA , a market research firm. Sales were 160 percent higher in the fourth quarter of 2012 than they were in the first quarter of the year.