A report says while consumers may take every step possible to ensure a comfortable retirement, the simple element of time may thwart the best laid plans.
According to Bankrate.com, it's becoming increasingly common that some retirees out-live their savings and investments, mainly because many simply did not think they would live as long as they have. Life insurance companies can help protect against that scenario, said the report, if a retiree were to purchase an advanced life deferred annuity. That insurance guarantees income for life, however unlike life insurance, there is no death benefit, meaning investors risk losing out if they die before they are able to cash in the benefits.
Additionally, retirees will only be able to make use of the funds once they reach a set age - and not before.
"These policies do provide a very large payout if you happen to live that long, but the fact that you're going to put X amount of dollars into it and not be able to get to access that money for 30 years, if you even live that long, is a big concern," financial expert Jason Stewart told the source.
Seniors are advised to consult with a financial planner, who can point them in the right direction when it comes to financial matters such as term life insurance.