for those of you who care to know, a pension annuity is also referred to as a longevity annuity, but is most correctly called a deferred income equity indexed annuity, often with a LTC doubler. It often comes with a free steak dinner if you respond to the add you get in the mail to learn how to protect your savings. You write one big check, much like a hybrid, your "pension" piggy bank grows by lets say 7% guaranteed every year, but you then pick a point in the future where by you want to start collecting income, and from that point on, the calculation determines your guaranteed lifetime forever income....regardless of whether all your money is exhausted or not.
It is for those who might be afraid of outliving their savings by virtue of tremendous longevity in their family tree or some long term terrible illness, and would like to have a guaranteed income, aka pension amount, for as long as they, and/or their spouse remains alive. Also, with some of these products, that income stream can be doubled for a period of time if that person is either NH confined or unable to do 2/6 ADL
It can be issued with little or no medical underwriting....so if someone is uninsurable for all LTC solutions.....lets say HIV + for example.....you can get one of these products.
is it a good product?....that depends. The wealthiest agents in the insurance industry are likely either selling group health or these annuities....so someone is buying a sh*t load of these plans...and if you think we are heading for a socialist county any time soon, you will see lots more money rolling into these plans before the stock market tanks.
Else , like any product, you are dealing with an insurance company....so you only have state guarantees to fall back on.
