Simulation Modeling on Life Care Annuity: Final Report

This report examines the potential for asset-based pre-funding of retirement income and disability insurance through an annuity that provides both income and long term care protection. The potential for such products is examined in the context of the possible use of reverse mortgage as a funding source for the annuity. The affordability of a combined annuity is examined with and without a reverse mortgage. The impact of medical underwriting for long-term care insurance (and the reduced underwriting theoretically available through an annuity) is also examined as are some alternative annuity designs. [41 PDF pages]