Longevity Insurance

Longevity Insurance

An insurance policy that pays a benefit if the policyholder lives to a certain age. For example, in exchange for the premium, longevity insurance provides a lump sum to the policyholder, for example, if he/she lives to 90. Longevity insurance is comparable to life insurance; the chief difference is that the policyholder collects the benefit merely if he/she lives long enough. Longevity insurance protects against longevity risk.