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Old 06-03-2019, 05:49 PM
 
Location: plano
6,565 posts, read 8,094,240 times
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I am surprised to saw the least that life expectancy is not regulated nor required to be clearly communicated.

One of the biggest downsides I see with GIC deferred annuities, in addition to high fees embedded in them, is the complicated nature of these lets the key life expectancy source they use to be non transparent at all and even hard to get access to. I am shocked these are not regulated and standard such Ive seen for Social Security. Sure life expectancy change over time as we slowly life older but this excuse seems to be used to not have standard LE tables and not to disclose them without being asked.

Am I off base here? Why are they not regulated if not require approval of the governing body?

Ive heard MathJack mention be careful with these at least and the more I study the more I see he is absolutely right
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Old 06-05-2019, 11:17 AM
 
Location: plano
6,565 posts, read 8,094,240 times
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If there is an approved life expectancy source for deferred annuities I'd welcome seeing it. Precision in life expectancy forecasts for use in say 5 or 10 years out are needed for any deferred annuity product to be half understandable yet there seems to not be such a thing? Dies each company come up with their own estimate if how many years an annuitized value should be paid it spread across?
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Old 06-05-2019, 11:49 AM
 
71,490 posts, read 71,674,131 times
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ZIt is not based on just some table ... interest rates ,mortality rates , age and type of annuity go in to the calculation.. then there are fees,expenses and commissions which vary. Most of this can vary yearly

Last edited by mathjak107; 06-05-2019 at 11:58 AM..
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Old 06-05-2019, 12:20 PM
 
2,591 posts, read 5,286,635 times
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> I am surprised to saw the least that life expectancy is not regulated nor required to be clearly communicated.

Something went wrong with your spell checker or voice recognition.

For, say, an single premium annuity- a competitive advantage for an insurance company is the accuracy of its life expectancy predictions.

And they can't just use numbers from the government- because annuity purchasers are self-selected, and tend to be people without known life-limiting conditions.
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Old 06-05-2019, 12:31 PM
 
71,490 posts, read 71,674,131 times
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Most use the office of actuary tables at the social security administration
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Old 06-05-2019, 12:33 PM
 
71,490 posts, read 71,674,131 times
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Most use the office of actuary tables at the social security administration

https://www.ssa.gov/oact/STATS/table4c6.html
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