So in that sense, it is a bit like a Tontine.Harmanic, just to note for other readers: There is a footnote assuming that both of the two-annuitant illustration are assumed to be 67 years old. That directly affects the cost of a 10-year guarantee.
But a guarantee is important to people who are worried about what they consider to be "a bet with the insurance company."
One of the differences that has not been brought up yet is that TIAA, the "big, evil insurance company" does NOT CARE when a TIAA Annuitant dies. The Mortality Risk falls entirely on the Participants (customers.) It is reasonable to assume that Covid-Era deaths account for some portion of recent positive returns. That's because the left-over principal benefits annuitants who remain alive.
Statistics: Posted by Harmanic — Fri Jul 19, 2024 12:15 pm — Replies 6 — Views 435