Too many retirees are outliving their retirement accounts. Consequently, the insurance industry has created a possible solution. This product is called market called “longevity insurance” or, more accurately, a longevity annuity. You see, this is really just a new name for an old concept, the deferred annuity.
Unlike most annuities, which are purchased with a lump sum and begin paying out soon afterward, these policies typically don’t begin paying anything until some 10 or 20 years after you buy them. Sales of these annuities were up 35% last year from a year earlier.