Tips When Buying a Longevity Annuity

Published September 10, 2017
Find the answers to your questions when buying a longevity annuity.
  • Know all your available options before buying a longevity annuity
  • Make sure that a longevity annuity is right for your financial situation
  • Compare longevity annuities from different insurance companies with Blueprint Income’s quote tool

Purchasing a longevity annuity is a long term commitment, so as your licensed fiduciaries, we want to make sure you know the answers to these 6 questions before buying one:

purchasing a longevity annuity

1. Which insurance companies offer longevity annuities? 

Leading insurance companies like Guardian Life, Lincoln Financial, MassMutual, MetLife, Mutual of Omaha, New York Life, Pacific Life, and Principal all offer longevity annuities. When determining which insurance company you should purchase with keep in mind that not all companies sell all products and features in every state!

2. Where can I buy a longevity annuity? 

The easiest way to buy a longevity annuity is online through our website. We only work with A-and-higher rated carriers, so you know you’ll get a reliable product. At Blueprint Income we have the most selection of insurers and the highest payouts on A rated and better products. Some insurance agents, brokers, and financial advisors will also sell income annuities.

3. What incentive does my broker or insurance agent have to sell this to me?

Not all financial advisors are fiduciaries, meaning they are not legally obligated to keep their clients best interests in mind while making their financial decisions. (That’s not us, we choose to act as a fiduciary!) If you are asking a personal agent or advisor for assistance in buying a longevity annuity, make sure to know:

  1. How they’re compensated on the sale;
  2. How they select the products they’re showing you;
  3. How many insurance companies they work with (if they aren’t working with too many, question them! They may not be recommending the perfect product for your needs, but rather the best product for their salaries).

4. How do insurance company credit ratings factor into my choice?

While you might want to go with the company that offers the highest payout, those are the companies that are probably rated poorly. The value of a longevity annuity is undeniably linked to the claims-paying ability of the insurance company. The insurer needs to be around at least as long as you are! Buying from only highly-rated insurers is the way to go. That’s why we only offer you A and higher rated insurers on our platform.

5. Should I consider a qualified or non-qualified longevity annuity? 

Take a look at what kind of retirement savings you’ll be drawing from to purchase a longevity annuity. If you’re drawing from a pre-tax or 401(k) account, then you’ll be purchasing a qualified annuity. If you’re drawing from a post-tax account, you’ll be purchasing a non-qualified annuity.

6. Should I buy in chunks or as a subscription over time? 

If you’re still years away from retirement, you should consider buying a longevity annuity as a Personal Pension. You can contribute to an income over time, as prices improve, and have the ability to diversify across carriers — all done automatically through our platform.

How Can I Buy a Longevity Annuity?

At Blueprint Income, we offer annuities from more than 15 top rated insurance companies. Click below to get real-time personalized quotes.

purchasing a longevity annuity

From there, you’ll get access to our annuity guides and team of specialists to help you analyze your retirement finances and walk you through the application process.

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Nimish Shukla

Nimish Shukla

Financial Planning Professional

Nimish has spoken with thousands of customers about retirement spending. As a CFA Charterholder and licensed fixed annuity producer he values the importance of building an income stream for retirement. In addition to his work at Blueprint Income he is also a regular contributor to Nerdwallet.