MetLife Longevity Income Guarantee offered by MetLife

Introduction
Type of Product Fixed Annuity
Product NameMetLife Longevity Income Guarantee
Offered byMetLife
Company Info

The Metropolitan Life Insur... read more

Contact Information
Company OfferingMetLife
Company TypeInsurance Company
Phone Number
Websitewww.metlife.com
Talk to a Financial Advisor
Contact Information Connect with a Financial Advisor
Reviews and Ratings
Average Review

5/5 from 2 Reviews


Product Ratings and Reviews

Rating:
5
Average: 5 (1 vote)

Metlife is one of several insurance companies offering a longevity insurance product.

Metlife was one of the first--if not the first--companies that came to market with a longevity annuity.  This took place initially in the defined contribution space and now includes a retail offering.

The Longevity Income Guarantee is Metlife's retail longevity insurance offering.

Metlife seems to be doing a very good job communicating the value propositon of the longevity annuity.

For example, the sales material for the Longevity Income Guarantee does a good job explaining that one of the fundamental reasons to consider a longevity annuity involves the fact that these products can increase the level of sustainable lifetime income that can be generated from a portfolio of assets.

Second, Metlife provides quarterly statements with their longevity insurance product.  The statements show how the annuity currently translates into future lifetime income.  While this type of communication might seem minor, it is hugely important with products such as the longevity annuity that have lifespans exceeding decades. Financial services consumers need to stay engaged and overcome the natural behavioral hurdles that can impede adoption of these products. 

 

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Rating:
5
Average: 5 (1 vote)

There are 2 versions of MetLife's longevity annuity.

The first is what they refer to as the "flexible access" version.

As the name implies, the flexible access version provides some "outs" for the consumer.  There is the death benefit that provides liquidity for heirs in the event of the owner's passing.

A premature death (before the owner starts taking income from the annuity) results in a death benefit equal to total purchase payments compounded at 3 percent annually.

An owner passing away after payments commence will result in continued payments to heirs if the policy was purchased with some guarantee period.

There are also commutation / withdrawal features that provide liquidity through access to funds.  

The other version is referred to as the "maximum income" option.  

The trade-off here is the flexibility and liquidity that comes with some of the features referenced above.  The owner of the maximum income version must wait until they are 85 to receive any income.

Higher future payments are offered in exchange for the lower flexibility.

The differences in income payments can be meaningful.  Depending on age and gender, maximum income benefits can be as almost 100 percent higher than the flexible access income.

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