This is the second in a series of articles about QLAC, which began with “What Every Baby Boomer Should Know – Introducing QLAC.”
A lot has changed since the first article came out. Additional insurance companies have received approval of their QLAC products in various states. Financial writers are beginning to write about QLAC with generally favorable stories.
While the business is still in its infancy, investors will want to begin making plans for distributing their IRA or 401(k) and will want to (1) have an estimate of what QLAC can provide in terms of guaranteed income, and (2) know when enough insurance companies are offering QLAC to create a competitive market.
How much guaranteed lifetime income can an investor purchase from a QLAC?
The answer depends on the investor’s age and gender (and whether income is paid over one or two lifetimes), the age income will start, and whether the investor elects to provide beneficiary protection before the income starts. More