AgeUp Annuities

AgeUp Review

More and more people are living to age 90 and beyond. Longevity is largely a good thing but can present financial complications. According to the U.S. Government Accountability Office, this is particularly true because nearly half of Americans have no retirement savings. Since Social Security often falls short of covering a comfortable lifestyle, an AgeUp annuity can bridge the gap between an aging retiree’s cash flow and expenses.

We named AgeUp as Great for Seniors in our Best Annuity Companies Buyer’s Guide. AgeUp offers a product that keeps seniors financially secure while being affordable for their loved ones.

Pros

• Provides guaranteed income for life
• Choice of payout age
• Customizable monthly premium
• Death benefit available
• Issued by MassMutual

Cons

• Currently available in 42 states
• Fee structure unclear
• Online application tool can be glitchy

AgeUp Deferred Income Annuity

AgeUp is a deferred income annuity that you can buy to provide your loved one — the annuitant — with a guaranteed income stream for life. While AgeUp is not intended to replace all retirement income, the annuity can provide a reliable supplemental cash flow. Even though purchasers typically buy this annuity for a parent, they can buy one for other aging relatives as well.

The income stream will begin paying out monthly once the annuitant reaches a set age. Payouts go directly to the person purchasing the annuity, who can use the funds to pay for anything their relative needs. There are no restrictions on how the money can be used from an AgeUp annuity, and no claims to file.

How an AgeUp Annuity Works

The AgeUp annuity process is lengthy but straightforward. Here’s an example of what you can expect:

AgeUp Annuity Options

AgeUp annuity purchasers will have to make a few decisions when setting up their annuity such as:

• How much they can afford in monthly premiums
• The age their loved one will begin to receive annuity payouts
• Whether they want a death benefit

AgeUp Annuity Payout Age

You can begin drawing from an AgeUp annuity once the annuitant reaches the established payout age. Purchasers can set the payout age from 91 to 100. Delaying annuity maturity yields higher monthly payouts. You can’t change the payout age once the annuity contract is finalized.

Once started, payouts continue until the annuitant dies. Due to AgeUp’s guarantee, purchasers receive at least as much as they paid in cumulative monthly payments. If there is a balance in the annuity upon their loved one’s death, the company cuts the purchaser a check.

AgeUp Death Benefit Choices

AgeUp gives purchasers a choice: death benefit protection or a higher monthly payout. You can’t reverse this selection after finalizing the annuity contract, so choose thoughtfully.

The death benefit protection pays the purchaser all paid premiums if the annuitant dies before reaching the payout age. If the purchaser dies before the annuitant reaches payout age, all premiums get returned to the purchaser’s estate.

The higher payout option provides a greater guaranteed income stream for the annuitant. However, if the annuitant or the purchaser dies before the payout date, all premiums are forfeited.

AgeUp Annuity Eligibility

AgeUp’s eligibility requirements to buy an annuity include:

• Purchaser must be age 21 to 75
• Annuitant must be age 50 to 75
• Both the purchaser and the annuitant must be a United States citizen or a permanent resident
• The annuity can’t replace an existing life insurance policy or another annuity

How to Buy an AgeUp Annuity

AgeUp annuities are available exclusively through Haven Life Insurance, and you can start by getting a free quote on AgeUp’s website. The brief online form asks for the following information:

• ZIP code (to determine product availability)
• The annuitant’s relationship to the purchaser
• The annuitant’s current age
• The age monthly payments should start for the annuitant
• Purchaser’s monthly premium amount election
• Whether or not the purchaser wants the death benefit protection

Quotes show an estimated monthly income the annuitant would receive after reaching the payout age. Use the estimate as a guide since the number reflects current rates, which could change.

AgeUp Application Process

After reviewing the quote, consumers who want to buy an annuity create an account and complete a quick online application. No medical exam is required. You’ll supply some additional information to apply to purchase the annuity:

• Banking information to process automated monthly payments
• Contact information for both the purchaser and annuitant

Submit the information and the application gets processed by an automated system within minutes. If approved, the system issues the contract for the annuity on the spot.

AgeUp Costs

AgeUp annuities offer monthly premiums between $25 to $250. Pay higher monthly premiums during the accumulation phase to receive larger monthly payouts during the withdrawal phase. AgeUp lets the purchaser know how much future monthly income each payment buys.

Purchasers can change the amount or suspend their premium payments at any time. If you permanently stop making payments, you are still entitled to the income stream that builds up once the annuitant reaches the payout age. Premium payments then cease 13 months before the payout age.

We could not find a definitive fee structure, so we can’t share how much AgeUp charges, if anything, to process the initial annuity application or to maintain the account.

AgeUp Complaints

We found no reviews online because AgeUp is a new financial product. However, Haven Life, the company offering AgeUp, is well-regarded. Haven Life is accredited with the Better Business Bureau and gets an A+ rating from the BBB. Haven Life is also a ConsumerAffairs accredited brand and earned 4.8 out of 5 stars from ConsumersAdvocate. The AgeUp annuity issuing company, MassMutual, is A++ rated by AM Best, so consumers can feel confident that their annuity will be stable and secure for the long haul.

AgeUp Q&A

• Where is AgeUp available?

  As of 2020, AgeUp is available for purchase in the following states: Alabama, Alaska, Arizona, Colorado, Connecticut, District of Columbia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Utah, Vermont, Virginia, West Virginia, Wyoming, Washington, Nevada, Wisconsin, Georgia, South Carolina, New Hampshire and Maryland. Interested consumers can sign up to receive an alert when the product is available in their state.

• Can a consumer buy one AgeUp annuity to cover both parents?

  You can only purchase an AgeUp annuity for an individual. You need to buy one contract for each person you wish to cover.

• Does the AgeUp annuity have a purchase limit?

  The maximum monthly premium you can pay for an AgeUp annuity is $250. Purchaser payments get capped at $6,000 annually, and lump-sum purchases are permitted. TheAgeUp annuity, as a whole, is limited to a maximum of $150,000 in purchaser contributions.

• Can I withdraw money from an AgeUp annuity before the annuitant reaches the payout age?

  AgeUp annuities are not liquid, so you can’t make withdrawals until the annuitant reaches their payout age. An exception is if the annuitant or purchaser dies and the purchaser selected the death benefit.

• Can I cancel or close an AgeUp annuity account?

  Ten days after opening the annuity, the purchaser can stop making premium payments at any time. Funds paid in are inaccessible until the annuity’s payout date (or death benefit disbursement, if applicable). If you somehow open an AgeUp annuity in error, you can contact the company to nullify the account within 10 days of contract execution.

• How do funds in an AgeUp annuity get invested?

  MassMutual invests AgeUp annuity funds into regulated financial instruments. However, the performance of those investments does not alter the guaranteed income stream payout.

Conclusion

Seniors are living longer and could deplete retirement savings and struggle to cover personal expenses. AgeUp provides an affordable way to step in and address this concern for your parents or other loved ones before it becomes a problem. The AgeUp deferred income annuity is easy to apply for and buy, a safe investment for seniors age 91 and older to have a reliable cash flow for the rest of their lives.