New annuity aimed at adult children of aging parents

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New annuity aimed at adult children of aging parents
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MassMutual’s Haven Life unit introduces a new product Boomers can purchase to help their parents avert the risk of outliving their retirement funds.
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Really curious what Annuity products limit annuitization past age 85.

Most Annuities on the market allow annuitization up to age 95. Maybe not Mass... but most others do.
 
Really curious what Annuity products limit annuitization past age 85.

Most Annuities on the market allow annuitization up to age 95. Maybe not Mass... but most others do.
 
Who faces the tax cosequence? What if the boomer dies? As if this cant be done already. This is marketing not problem resolution.
 
Who faces the tax cosequence? What if the boomer dies? As if this cant be done already. This is marketing not problem resolution.

I am certain that because the child wants to be the owner to control the policy & also keep the parent from being the owner for Medicaid Spend down for nursing home, the child will be the owner & therefore the tax reporting of deferred gains at surrender, death, maturity or income stream will be reported to the child who owns it. Child would be owner, beneficiary, payor of premiums & payee of payout annuity checks. Parent would merely be the annuitant with their date of birth/gender determining the payout check amounts.

In terms of "what if the boomer dies", I think it will depend on the chosen payout selected at time of purchase. If max check amount of Life only, there would be no money at death of the boomer annuitant. If Life with installment refund, they would receive at least what they deposited.

Tend to agree with you that this is not really as new as they are making it sound other than how they are going about marketing the idea of basically a DIA with different owners. Possibly the unique part is the tax code on this specific annuity being annuitant driven & not owner driven as to when a death claim would be required to be paid out by IRS tax codes
 
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