What will we be covering in this annuity review?

In this review of the new MassMutual AgeUp annuity, we will be going over:

  • Type of product
  • FeesIndependent Review of the Massachusetts Mutual Life Stable Voyage 5 Year Single Premium Fixed Deferred Annuity
  • What to anticipate regarding performance
  • Who could benefit from this annuity
  • Who may not be a good fit for this annuity

Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.

The purchase of any type of financial product can take some serious consideration and review. This is particularly the case with newer entrants to the marketplace. For instance, “everyone” says that you should never buy a car in its first model year. Rather, wait for the manufacturer to get all the “bugs” out first. That way, you can save yourself a lot of money and frustration.

But that may or may not be the case with the recently released AgeUp annuity from MassMutual. This financial vehicle has been specifically designed to solve the expense of caring for aging parents – an issue that more and more Baby Boomers are now facing.

According to the Social Security Administration, one out of every three 65-year-olds today will live past age 90 – and all those “extra” years will typically require at least some amount of money to pay for health and long-term care costs, on top of everyday living expenses.

While living longer can definitely have some advantages, there can also be a number of significant drawbacks – at least from a financial standpoint. In fact, longevity is not only a financial risk in and of itself, but it is also considered a multiplier of all other financial risks – including inflation, market volatility, and sequence of returns risk – because it forces people to face these obstacles for a longer period of time.

Unfortunately, the purchase of stand-alone long-term care insurance can be a crapshoot. That’s because there is always the possibility that the premiums will be paid for many years, only to have the insured not need it.

But NOT being prepared for what could cost more than $10,000 per month is an even worse strategy. Medicare pays very little for long-term care needs – and in order to qualify for Medicaid, the patient has to literally “spend down” their assets to the poverty level…and even then, there is no guarantee that they’ll be covered.

Then what?

MassMutual has actually answered that question with the development of its AgeUp annuity product. The first multi-generational annuity product, AgeUp is the only financial vehicle of its kind in the marketplace today.

It’s affordable and flexible – and it doesn’t require a medical examination from the insured. But, it’s not the right fit for everyone. So, before you move forward with purchasing MassMutual’s AgeUp annuity, check out our in-depth review here.

Annuity and Retirement Income Planning Information that Can Be Trusted

If you have never visited our website before, then please allow us to welcome you here to AnnuityGator.com. We are a team of annuity experts (“geeks”) who are focused on offering in-depth and unbiased annuity reviews.

We’ve been at this for quite some time now – longer than our competitors – and because of that, we have come to be known as a trusted source of annuity information. But, just like anything that works well, there have also been a number of “copycat” websites that have popped up over the years.

There are some websites out there that will make some pretty serious claims about the annuities they offer, with the primary intent of luring you in so that you part with your contact information.

If you run across sites like this, be sure that what they are stating is actually true before you part with your hard-earned life savings. One big reason for this is because annuities can be difficult – and expensive – to get out of if you determine that the product you purchase isn’t really performing the way you expected it to.

In order to be perfectly clear here, we want to say that we feel annuities can in fact be good products for some people – provided that they are in line with your overall financial goals and needs.

That being said, let’s dive into this review! [desktoponly]

MassMutual AgeUp Annuity at a Glance

Product NameCapital Bonus 2
IssuerHorace Mann Life Insurance Company
Type of ProductFixed Annuity
A.M. Best RatingA
Phone Number(800) 999-1030

Opening Thoughts on the AgeUp Annuity from MassMutual

MassMutual (Massachusetts Mutual Life Insurance Company) has nearly 170 years of experience under its belt in the wealth preservation and protection arena. As of year-end 2018, the company had roughly $255 billion in total assets.

Rated highly by all of the major insurer rating agencies, MassMutual is considered to be strong and stable, and it has a good reputation for paying out claims to its policyholders. The company will likely continue to do so, particularly in the area of annuities, as these products have become much more popular over the past decade or so.

The AgeUp annuity is a newly released product that is geared towards Baby Boomers assisting a parent or other loved one if they need long-term care. According to Genworth’s 2019 Cost of Care Survey, just one month in a semi-private room at a nursing facility costs, on average, more than $7,500. A private room is roughly $1,000 per month more, bringing the total up to over $100,000 per year.

If a parent or loved one needed help with this type of expense, where would you find the money?

The AgeUp annuity from MassMutual could provide you with a source.

During the design phase of the AgeUp annuity, MassMutual conducted an expansive amount of research – and in doing so, found some interesting statistics and beliefs from its target market, such as:

  • 71% of Gen Xers and Baby Boomers feel that at least one of their parents or parents-in-law will live longer than their average life expectancy
  • 57% of this same group have a relative who has lived to age 95 or over
  • More than 60% believe that they will have to support their parent(s) and/or parents-in-law in their old age
  • 35% feel that their parents will likely run out of money at some point in time, likely between age 90 and 100

Before we get into the gritty details, here are some necessary legal disclosures…

This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Massachusetts Mutual has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.

For additional information on how to compare fixed annuities so that you can decide which may be the best one for you, in order to obtain our free annuity report.

How Mass Mutual Describes the AgeUp Annuity

According to its website, the AgeUp annuity is described as a financial vehicle that can help Baby Boomers prepare for retirement, while at the same time assisting a parent or other loved one with the high cost of a long-term care need.

The annuity, developed by MassMutual, is actually sold through Haven Life Insurance Agency, a MassMutual-owned innovation hub that is building new technologies to make buying important financial products simple.

So, how does the AgeUp annuity from MassMutual actually work?

Each of the monthly premiums that are paid in (which can start as low as just $25 per month, and can go as high as $250) “purchases” a small portion of guaranteed income that starts when a parent is between the age of 91 and 100, and that lasts for the remainder of their lifetime.

Over time, the “slices” of guaranteed income can start to stack up, becoming monthly payouts that come directly to the investor, and can be used for a wide array of needs, such as medical care, assisted living, nursing home costs, and/or any other expenses.

At the time of purchase, you can choose from two different annuity options. One of these will return 100% of the funds you’ve paid into the annuity until that point. This may be used if you and/or your parent passes away before the payout age begins.

Alternatively, if you opt to keep the annuity in force indefinitely, the income payouts will typically be higher. However, in this case, if you and/or your parent dies before the payout age, none of the premiums will be returned to you.

You also have the option to adjust the amount of premium you pay in – or even to pause the premium payment for a while if you need to.

For more of the details on how the AgeUp annuity works, go here.

How an Insurance or Financial Advisor Might Describe the AgeUp Annuity to a Client

Through the magic of marketing, the AgeUp annuity might seem like a new and innovative product. But in reality, though, it is a deferred income annuity (DIA) – a type of annuity that has actually been in existence for many years.

With that in mind, it is likely that an insurance or financial advisor who is discussing this annuity with you will key in on the guaranteed income feature. In addition, DIAs will oftentimes offer higher income payments than regular immediate annuities.

This is because the annuitant’s (i.e., the income recipient’s) age when the payouts start is typically older than it would be if you take income from a regular deferred and /or immediate annuity. Therefore, this too is a feature that an advisor might focus on when discussing this – or any – DIA annuity with you.

However, prior to moving forward and making a long-term commitment to purchase this annuity, there are a few items that you should know, which may or may not deem this to be the best product for your situation.

For instance, when you purchase this particular DIA, you need to decide upfront whether to forfeit your principal in exchange for the future income stream or alternatively, just simply get your money back. This can present somewhat of a gamble since you have no idea how long you and your parent or other loved one will live. With that in mind, you really need to determine whether or not you want to take this big of a chance with the money you commit to the premium.

On top of that, you can’t access your money once you’ve passed the 10-day free look period. So, if an emergency comes up a year or two down the road, don’t count on tapping the AgeUp annuity, because the only way to get at it is if your parent draws an income stream, or you opt for the future refund of premium feature.

The Annuity Gator’s End Take on MassMutual AgeUp Annuity

Where this annuity works best:

The AgeUp Annuity from MassMutual may be a good choice for you if you are:

  • Anticipating having to help a parent with long-term care costs
  • Have longevity in your family and think your parent(s) will live past the age of 91

Where this annuity works the worst:

This annuity doesn’t work so well for those whose:

  • Parents have a shorter life expectancy
  • Need to keep money liquid for potential emergencies

In Summary

Because deferred income annuities (DIAs) will oftentimes provide a higher amount of income (as versus an immediate annuity), these financial vehicles can be attractive to those who anticipate assisting a parent or parent-in-law with future long-term care expenses.

But just as you would likely do before making any other high ticket purchase, you must understand whether or not the product is appropriate for you and your loved one(s), as annuities are not a one-size-fits-all vehicle. And, if you find out after you’ve committed that it really is not right for you, it could be quite an expensive mistake.

If you are still considering the purchase of the AgeUp annuity, then you can be assured that your loved one will have an income stream in the future, and that can be used for any need if they require long-term care services. But this unique annuity could quite possibly still fall somewhat short – and there could be a better alternative out there for you.

In reality, the only way to truly know if this annuity may perform the way you want it to is to have it tested. We can do that for you by running the numbers through our annuity calculator and we can then provide you with a spreadsheet showing the results. In order to receive this information, just simply contact us via our secure online contact form here.

Do You Have Any More Questions on the Mass Mutual Age Up Annuity? Did You Notice Any Mistakes in this Review?

We know that this annuity review has run a bit on the lengthy side. Yet, we feel that it is always much better to provide a bit “too much” information that not to provide you with enough. With that in mind, if you found this review to be beneficial, please feel free to forward it on and share it with anybody whom you think might also benefit from it. Likewise, if this annuity review has led you to have even more questions about the AgeUp annuity, please let us know that, too.

Are there any other annuities that you would like to see reviewed?

If so, great! There are many annuities available today in the market. So, if there is one (or more) that you would like to see included in our Annuity Gator Annuity Review Database, then please let us know that, as well, and our team of highly trained annuity “geeks” will get right on it!


The Annuity Gator

P.S. If you would like to read more of our MassMutual annuity reviews here are some links to check out:

Independent Review of the MassMutual Age Up (AgeUp) Annuity