The Hartford Financial Services Group unveiled Thursday a new life insurance rider that provides a longer income stream for people who live to 90 and beyond.
The new death benefit protection, called LongevityAccess Rider, can be added to the insurer’s standard universal life insurance policy, Hartford Bicentennial UL Freedom.
“People who develop a financial plan often assume they will not live beyond their early 80s, when, in fact, the fastest growing demographic in the nation is people over the age of 85,” said Dr. Robert Pokorski, The Hartford’s chief medical strategist.
Here’s how it works. If the purchaser lives to the age of 90 and meets the rider’s eligibility requirements, they will be able to withdraw an amount equal to as much as 1 percent of their death benefit per month. The total amount of the death benefit can range in value from $100,000 to $2 million.
For someone with a $500,000 policy, that means they could receive up to $5,000 a month for 100 months, or eight years. And, should they eventually withdraw the full benefit during their lifetime, their policy’s beneficiaries will still receive a guaranteed residual death benefit.
