“It now only costs you $10,000 to purchase a stream of income you cannot outlive,” says Rich Lindsay, senior vice president of Symetra’s Life and Annuities division. “That’s how cost-effective longevity insurance can be. With Symetra Freedom Income you get more guaranteed income down the road for less money up front.”
For example, if a client wants $2,500 a month for life and purchases a Symetra immediate single premium income annuity at age 85, the premium would cost about $185,000 at today’s rates.3 However, if a 65-year-old client purchased the same monthly income to begin at age 85 through Symetra Freedom Income, the premium would cost around $31,000.4
Using Symetra Freedom Income, clients can buy future income at today’s prices with a small portion of their retirement savings — as little as 10 to 15 percent. Capturing today’s pricing is particularly valuable because the future cost of income annuities will increase if average life spans continue to lengthen.
Today’s retirees are expected to live longer than any previous generation. Yet while nearly nine out of 10 pre-retirees believe their financial resources will last up to age 80, only 55 percent are confident their savings will stretch to age 90.5 For those who expect to live into their eighties and perhaps hit the centenarian mark, longevity insurance guarantees their money will last as long as they do. Just as life insurance protects families from the financial risks of dying too soon, longevity insurance provides protection from the financial risks of outliving your retirement savings.
Symetra Freedom Income allows clients to choose a future date, typically 10 to 20 years, to begin collecting income based on their family history and their unique financial needs, reducing uncertainty around how long to plan for retirement. Additionally, because they are insured against outliving their retirement savings, clients have more flexibility with their portfolio investments than they might with other income options.
“The dynamic lifestyle of the Boomer generation is redefining retirement,” said Lindsay. “Symetra Freedom is more responsive to the modern retiree who expects to live a long, healthy life. Longevity insurance empowers retirees to more fully enjoy their active years without worrying where money will come from when they settle into their later years.”
Symetra Freedom includes several optional features including a death benefit, an annual payment increase to help counter the effects of inflation, and an installment refund.
1 Symetra Freedom Income is a single premium deferred annuity
2 Longevity Insurance refers to a concept, not the name of an insurance product. Some states define longevity insurance as an annuity with a payout option only and with no death benefit.
3 Hypothetical Illustration for Symetra Advantage Income as of 4/1/08
4 Hypothetical illustration of Symetra Freedom Income as of 4/1/08
5 “Retirement Planning: Is It Benefits Happening?” LIMRA, 2006
6 Total GAAP assets per financial statements as of March 31, 2008.
Guarantees and benefits are subject to the claims-paying ability of the underlying insurance company. Symetra Freedom Income Annuity is a single premium deferred payout annuity issued by Symetra Life Insurance Company, 777 108th Ave NE, Suite 1200, Bellevue, WA 98004. Contract form numbers are LIA-76 2/08 and LIA-80 3/08. Not available in all U.S. states or any U.S. territory. Not approved for use in New York.
