Life insurance provider The Hartford has introduced a new policy rider that provides at least eight years of income to a policyholder who lives to age 90 or over.
The plan allows the policyholder to take out some of the money in a death benefit that would normally be awarded to a beneficiary at their passing. With the Longevity Access Rider a policy owner can receive a guaranteed monthly income after reaching the age of 90, with total benefits up to the full amount of the death benefit.
Americans are living longer than ever, and as a result, are draining their retirement accounts with years of life still left. Dr. Robert Poloroski, The Hartford's chief medical strategist, said many people assume they will not live beyond their early 80's, although adults over 85 are currently the fastest growing demographic in the country.
"Add to that the fact that nearly three-quarters of 65-year-olds will need to cover the cost of chronic care sometime during their lifetime and you can see how even the best-laid financial plan can be compromised," he said.
Some life insurance companies also offer long-term care riders, according to the American Association for Long-Term Care Insurance, which can be used to cover medical expenses that are the result of age-related illnesses.