Submitted by Anonymous on
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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