AgeUp is a new deferred income annuity product offered by Haven Life Insurance Agency. By purchasing an AgeUp policy, children can guarantee a steady income stream for their parents or loved ones should they live into their 90s.
According to the Social Security Administration (SSA), about one-third of today’s 65-year olds will live to age 90 and another one in seven will live past age 95. Yet a 2019 study by the Insured Retirement Institute (IRI) found that only 55% of Baby Boomers had any money saved for retirement. These statistics show that a retirement savings crisis could be looming for an aging United States population.
With AgeUp, you can give your loved ones financial protection in their golden years while avoiding some of the hefty fees and minimum payment requirements that give annuities a bad rap. Keep reading our full AgeUp review to learn more about how these deferred income annuities work.
- Guaranteed stream of income after age 90
- Affordable monthly premiums starting at $25
- Death benefit or lifetime income options
Death benefit and lifetime income
Age Payouts Begin
Who Is AgeUp?
AgeUp is an annuity product put out by Haven Life and issued by its parent company MassMutual Life Insurance Company. MassMutual has been in business since 1851 and is rated A++ for financial strength by A.M. Best, an insurance rating agency. Haven Life is known for its affordable term life insurance products.
What Do They Offer?
AgeUp is an annuity product meant to provide additional income for people who live past 90. The AgeUp annuity is meant to fill the income gap left by the small amount of social security and people who are living much longer.
Note that AgeUp is not meant to replace retirement income but instead supplement it. The annuity has targeted payout dates for those ages 91-100. AgeUp can be bought for yourself (if you're 50-75 years old) or your parents.
Monthly premiums/contributions range from $25 per month to $250 per month, making AgeUp more affordable compared to other annuities that require an upfront payment of $10,000.
The annuity has two purchase options — death benefit or lifetime income.
- Death benefit option: Pays out a lower monthly amount. If your parent passes before the selected payout age, paid-in contributions will be returned.
- Lifetime income option: Monthly payouts are higher. If your parent passes before the selected payout age, you'll forfeit a refund.
But once you choose between higher monthly payments or death benefit, you can’t change it once the product is purchased. You can, however, increase, decrease, or pause your monthly premiums. With either option, there are no restrictions on how money from monthly payouts can be spent.
AgeUp is not a liquid product. Meaning, if you need to withdraw money at some point from your AgeUp annuity, that won’t be possible. There is no cash value with the AgeUp annuity. You’ll simply have to wait for the payouts to start or for the death benefit to become available.
Premiums are paid until 13 months before the target payout date. Note that if your loved one dies before the target payout age and you choose “death before payout age,” you’ll receive all of your premiums. The amount you receive back won’t be the exact amount you paid in since you’ll also need to account for the annuity’s fees.
If your loved one reaches the target payout age but passes, your returned contributions will be smaller. And if you chose the high monthly payout option and your loved passes before reaching the payout age, you’d lose all of your premiums.
Qualifications And Application Process
You or your loved one must be between the age of 50 to 75 to open the annuity. The application process is completely online and takes a few minutes to complete. No medical exam is required.
How Much Does It Payout?
Below are some example monthly payouts based on $50 per month contributions. You can see that if you choose the early death benefit, the monthly payout will be less. Also, the later the trigger age, the higher the monthly payment will be.
How Do I Contact Customer Service?
You can reach AgeUp at firstname.lastname@example.org or schedule a one-on-one call with one of their team members. You can also chat through the Age-up.com website.
How Do I Open An Account?
Are There Any Fees?
Like any insurance product, you can expect there to be fees associated with the AgeUp annuity. Unfortunately, AgeUp does not currently publish a fee schedule on its website. This is something that you'll want to discuss in detail with an AgeUp team member if you decide to move forward after receiving your online estimate.
Is My Money Safe?
While AgeUp is not FDIC insured, it is an annuity, which means that Haven Life is obligated to provide the income promised in your insurance contract as long as they are financially viable.
AgeUp annuities are issued by Haven Life’s parent company, MassMutual, which has an A++ financial rating from A.M. Best as of April 1, 2020.
Is It Worth It?
An annuity provides a reliable stream of income that won't fluctuate like a 401(k) that has its funds invested in the stock market. If the reliability of an annuity appeals to you, its low premiums and low minimum payment requirements could make AgeUp one of your best choices.
However, annuities are insurance products. And the fees on these products can be extremely high and also very well-hidden. Make sure you understand all of the fees involved before purchasing and compare them with other low-cost annuity products like Blueprint Income.
Finally, if you’re ok with weathering some ups and downs, you may be better off investing those monthly payments in a well-diversified index fund or ETF instead. That way you’d be able to access the money at any time, not just after your parents reach age 90. Here are the best online stock brokers according to our readers.
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Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
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