Retirement monthly money?

Question

I've heard of this kind of "insurance" for retirement buy cannot find any information about it. The plan was you pay for example $500,000 and are gauranteed say 50,000 a year for the rest of your life. The numbers may not be correct but it was along those lines. Now as much as i remember you need to pay that 500,000 right away, and if you pass away say in two years you lost 400,000 but if you live for another 25 years your in the plus. Can someone please let me know what company sell these plans? I f they are legit...

Answer 1

Annuities as a whole are not bad. However annuitizing an annuity is absolutely nuts. Some annuities now have what are called living benefits. These allow you to draw money and yet still have a death benefit for your heirs. After the market fall in 2000-2001 their were annuities out there that may only have a contract value of 75,000 and yet a death benefit of 500,000. These new living benefit annuities were put into place to protect against this happening. More details upon request.

Answer 2

Do a search on annuities.

Answer 3

all major life insurance companies sell annuities and any insurance agent will drool over the opportunity to sell you one.

why anyone in their right mind would want to buy one is beyond me, but ... hey!  different strokes for different folks.

[the rates of return implied are usually poor].

Answer 4

This is called an annuity, annuities can be an effective financial tool to cover your anticipated fixed expenses as you get older - such as covering the expense of medical or long term care insurance (you'll need these for as long as you live)

I work for MetLife so I am biased but here is a link to some information about how annuities can work with your retirement goals - http://www.metlife.com/Applications/Corp...