Hegna's Hotseat

How to Get Paid for Living Longer: Mortality Credits


ortality (or longevity) credits are basically a financial reward that increases the longer you live. Bank products, stocks, and bonds all pay a 71-year-old the exact same amount as a 34–year-old. But a lifetime income annuity rewards you through mortality credits. 

        There’s a story I like to tell that helps explain. It’s about five 90-year-old ladies who vacation together each year.  One year they decide to put $100 into a box. On the next vacation, they will bring the box, and all of the ladies who are still alive will split the money.

 “But Tom, what if I’m the first old lady to go?”

        Your money doesn’t have to disappear when you die. Consider a joint life option with your spouse, kids, or even grand-kids! You could even include a guaranteed cash refund of any money that has not been paid out. See, mortality credits are really about living benefits.

        Insurance companies know, on average, at what age 1,000 people will die. Now, they don’t know when YOU will die, but they do calculate when a group of people like you will die. That’s why they can provide you with a guaranteed source of income through a lifetime income annuity, and the longer you live, the more of these mortality credits you will reap!

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