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There exist fixed annuities that pay you $X annually as long as you live, which can be thought of as reverse life insurance. If you are rich and spend say $200
by Bostonian 4y ago
There exist fixed annuities that pay you $X annually as long as you live, which can be thought of as reverse life insurance.
If you are rich and spend say $200K annually on yourself in retirement and buy an annuity that pays $300K annually, and you tell your heirs that the $100K excess will be given to them annually, that would create an incentive for them to keep you alive. If you are that rich, however, they might want you to die sooner to get access to your other assets.
- rundmc 4y agoIf you want your kids even more incentivised to take care of you and help you live healthier & longer, you need to turn yourself from a potential financial liability (the kids will have to support you if you run out of money) into an income generating asset by joining a Tontine (see https://tontine.com/explainer https://tontine.com/explainer)
- SilasX 4y agoSince it's reverse life insurance, I had this shower thought that the incentives should be the opposite. Like, for life insurance, you get discounts for factors that make you a low risk of dying. So for annuities, shouldn't you get bonuses for factors that make you a higher risk for dying? "Yeah, I just want this annuity to ensure my financial future while I ride out my retirement as a skydiver..."
- Bostonian 4y agoAn "impaired risk annuity" AKA "medically underwritten immediate annuity" offers higher payments for annuitants in provably poor health.