Fluctuations in the value of stocks and bonds, longer life expectancy and inflation have increased the possibility of outliving our savings. Life insurance companies offer 2 options for guaranteed lifetime income.

Annuities (joint or single life) pay income depending on age and sex at the time of purchase. They may include a guaranteed minimum payout period (e.g. 10 years) even if death occurs during that time. Once in place, they guarantee lifetime income and are irreversible.

Guaranteed Minimum Withdrawal Plans provide guaranteed lifetime income but are more flexible than annuities. Funds remaining at death are paid to the named beneficiary.