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General FAQs
Americans are living longer (great!), but saving less (not so great). AgeUp is designed to help fill in the financial gaps that come with a long life.
Under the hood, AgeUp is a longevity annuity, also called a deferred income annuity, or DIA. In a nutshell, longevity annuities let you trade money now for income in the future. That income is guaranteed by MassMutual and lasts for life starting after the age you select, similar to a pension you buy for yourself.
Even though AgeUp is a longevity annuity, it has two key differences that set it apart from most others on the market:
Affordable monthly premiums
Typical longevity annuities are bought with a lump sum payment of at least $10,000, and the average premium is over $180,0001, but we designed AgeUp to be accessible to almost everyone. Instead of a large upfront payment, AgeUp lets you choose your own monthly premiums that start at just $25.
Longer deferral, larger payouts
Most longevity annuity payouts can only be deferred until age 85, but AgeUp payouts begin at any age you choose between 91-100. Starting the payouts later means more monthly income than a typical longevity annuity, dollar for dollar, at a time in life it’s usually needed most.
AgeUp is issued and backed by MassMutual, and sold by Haven Life Insurance Agency, a MassMutual-owned innovation hub. MassMutual has been in business since 1851 and is rated A++ for financial strength by A.M. Best2.
First, AgeUp is meant to supplement your retirement savings and/or investments, rather than replace them. AgeUp has some unique advantages that might make it a good choice for you, along with some trade-offs to consider.
AgeUp pros:
- Income that lasts for life starting at target payout age
- Pay over time, with no lump sum required
- No restrictions on how you can use the money
- Large payouts relative to premiums (compared to a typical longevity annuity)
- Benefit from longevity credits
- No market risk
Trade-offs:
- Not liquid like a savings account
- Payouts are guaranteed by MassMutual, but they aren’t FDIC-insured
- Guaranteed future income is based on conservative projections, rather than market appreciation
With longevity annuities like AgeUp, you’re buying a set amount of future income, rather than building up cash value. Think of it as more like a pension or Social Security, and less like a savings or investment account.
Not having a defined cash value is actually a good thing, since it means the income will never run out as long as you’re alive. However, that also means there isn’t a defined cash value to withdraw from, so AgeUp can’t be cashed in. You can always reduce or pause your monthly premium payments if money becomes an issue.
You can increase, decrease, or stop your monthly premium payments at any time – just let us know 10 days before your premium is due. You can also pause premium payments for a time if you need to, then start again when your finances improve.
Who is covered by AgeUp, the target payout age, and your choice for the “death before payout age” option are set at the time of purchase and can’t be changed, so think carefully before making those decisions.
MassMutual invests your premiums conservatively, but it’s important to remember that AgeUp isn’t like an investment account. You’re buying future income, rather than building up cash value. MassMutual takes on all of the investment risk, and your payouts are set in stone at the time of purchase, regardless of market performance.
In annuity terms, an annuitant is the person whose life expectancy an annuity is based on, and the contract owner is the person who pays the premiums. If you buy AgeUp for yourself, you’re both the annuitant and the contract owner. If you buy AgeUp for a loved one, he or she is the annuitant and you’re the contract owner.
AgeUp for me
To buy AgeUp for yourself, you’ll need to be a U.S. citizen or permanent resident between the ages of 50-75, and live in a state where AgeUp is offered. You can see our state-by-state availability here.
AgeUp is designed to help everyday Americans who have some retirement savings, but worry they may run out of money if they live past 90. If you’re in good health, have moderate retirement resources, and can afford to pay a small monthly premium over a long period, AgeUp might be a good option. However, if you’re unlikely to ever exhaust your retirement savings, have no retirement savings at all, or are in below-average health, AgeUp probably isn’t right for you.
Monthly premium payments start when you buy AgeUp, and last until 13 months before your target payout age. For example, if you choose to begin receiving AgeUp payouts at 91, you’d pay premiums from now until one month before your 90th birthday.
You can increase or decrease the amount of your monthly premiums at any point. You can also pause your premium payments for a time, then start again later. Just keep in mind that your future income builds over time as you pay premiums. Paying less into AgeUp now means getting less from AgeUp in the future.
Your choice for the “death before payout age” option determines what will happen.
Choosing "yes" guarantees that you’ll get back at least what you put in, no matter what. If you die before your target payout age, 100% of the premiums you’ve paid to that point will be returned to your beneficiary. However, your payouts will be smaller if you do reach your target payout age.
If you choose "no" for the “death before payout age" option, there’s no return if you die before payouts begin. There’s a chance you could lose your premium payments, but your payouts will be larger if you live to your target payout age.
AgeUp always comes with a Cash Refund Guarantee. That means the day you reach your target payout age, you’re guaranteed to receive at least what you put in, no matter what you choose for the “death before payout age” option.
For example, if you choose a target payout age of 93 and pay a total of $15,000 in premiums, the day you turn 93, you’re guaranteed to receive at least $15,000. If you were to die after receiving only $2,000 in payouts, your beneficiary or estate would receive a check for the remaining $13,000.
In addition to the “death before payout age” option you choose, the most important pricing factors are (all else being equal):
Premium amount
The larger your monthly premium, the higher your payouts.
Payout age
The higher the target payout age, the more each monthly payout will be. (In the same way that delaying Social Security retirement will increase the monthly benefit.)
Your age today
The younger you are when you start AgeUp, the larger the payouts will be. That’s because 1) you’re paying premiums for a longer period of time, and 2) the premiums have more time to mature.
Gender
Women have longer life expectancies on average, so the payouts will be slightly higher for men than women if all else is equal. However, some states require uniform pricing regardless of gender.
Interest rates and other pricing factors
Each time we collect a monthly premium, we guarantee an associated increase in your monthly payouts amount that will never fluctuate. However, the amount of income you’ll receive for each monthly annuity payout depends on the projected interest rate environment and other pricing factors at the time of each premium.
If you die before your target payout age and chose "yes" for the “death before payout age” option, your beneficiary is the person who will receive the premium return. Or, if you die after reaching your target payout age, but haven’t yet received your full Cash Refund Guarantee, your beneficiary will receive the difference.
You can choose almost anyone to be your beneficiary, but there are some tax implications, so it’s important to talk to the person and/or a financial advisor before making a decision. You can also choose or change your beneficiary at any point in the future. If you don’t name a beneficiary, the money will be paid to your estate by default.
You’ll need to provide your date of birth, contact info, Social Security number for identity verification, and your bank details for automatic premium payments.
The application only takes a few minutes from start to finish, and you won’t need to provide any health insurance information or take any medical exams.
AgeUp for a parent or other loved one
You can buy AgeUp for someone who’s a close family relation, including your parent, grandparent, aunt, uncle, mother-in-law, or father-in-law. (You’ll also both need to meet the eligibility requirements described below.)
To buy AgeUp for a loved one, you (the contract owner) have to be between the ages of 21 and 75, and your loved one (the annuitant) has to be 50-75. You’ll also both need to be U.S. citizens or permanent residents.
If your parent or loved one could potentially live a long life, may need your help financially if so, and you can afford to pay small monthly premiums over a long period of time, AgeUp might be a good option. However, if your loved one is unlikely to live to an advanced age, or if you can’t afford to pay regular monthly premiums until then, AgeUp probably isn’t right for you.
You’ll begin paying monthly premiums when you sign up for AgeUp, and stop 13 months before your loved one reaches the target payout age. For example, if you choose to begin receiving payouts when your mother turns 91, you’d pay premiums until one month before her 90th birthday.
You can increase or decrease the amount of your monthly premiums at any point. You can also pause your premium payments for a time, then start again later. Just keep in mind that your future income builds over time as you pay premiums. Paying less into AgeUp now means getting less from AgeUp in the future.
AgeUp payouts are partially based on an individual’s age and life expectancy, so each AgeUp contract can only cover one person. However, you can buy more than one AgeUp – one for each parent, for example.
Your choice for the “death before payout age” option determines what will happen. (It also affects what will happen if you die before your loved one, so please read the following FAQ.)
Choosing "yes" guarantees you’ll get back at least what you put in, no matter what. If your loved one dies before payouts begin, 100% of the premiums you’ve paid to that point will be returned. However, the payouts will be smaller if he or she does reach the target payout age.
If you choose "no" for the “death before payout age option,” there’s no return if your loved one dies before payouts begin. There’s a chance you could lose your premium payments, but the payouts will be larger if he or she does reach the target payout age.
Before payouts begin:
If you die before your loved one reaches the target payout age, the contract expires. If you chose yes for the “death before payout age” option above, 100% of the premiums you’ve paid until that point will be returned to your beneficiary or estate. If you chose no, there’s no return.
After payouts begin:
If you die after your parent/loved one reaches the target payout age, AgeUp payouts will continue for as long as he or she is alive. This is true no matter which “death before payout age” option you choose. The payouts will go to your beneficiary, or your estate if you haven’t named one.
AgeUp always comes with a Cash Refund Guarantee, no matter which “death before payout age” option you choose. If you and your loved one are alive when your loved one reaches the target payout age, you’re guaranteed to get out at least as much as you put in.
For example, if you choose a target payout age of 93 for your father and pay a total of $15,000 in premiums, the day he turns 93, you’re guaranteed to receive at least $15,000. If he were to die after receiving only $2,000 in payouts, you or your beneficiary/estate would receive a check for the remaining $13,000.
In addition to the “death before payout age” option you choose, the most important pricing factors are (all else being equal):
Premium amount
The larger your monthly premium, the higher your payouts.
Payout age
The higher the target payout age, the more each monthly payout will be. (In the same way that delaying Social Security retirement will increase the monthly benefit.)
Loved one’s age today
The younger your loved one is when you start AgeUp, the larger the payouts will be. That’s because 1) you’re paying premiums for a longer period of time, and 2) the premiums have more time to mature.
Gender
Women have longer life expectancies on average, so the payouts will be slightly higher for men than women if all else is equal. However, some states require uniform pricing regardless of gender.
Interest rates and other pricing factors
Each time we collect a monthly premium, we guarantee an associated increase in your monthly payouts amount that will never fluctuate. However, the amount of income you’ll receive for each monthly annuity payout depends on the projected interest rate environment and other pricing factors at the time of each premium.
An AgeUp beneficiary is essentially your fall-back option if things don’t go well. There are two scenarios in which your beneficiary is important:
- If you die before your loved one reaches the target payout age and you’ve chosen "yes" for the “death before payout age” option, your premium payments to that point will be returned to your beneficiary.
- If you die after payouts have started, your beneficiary will continue receiving the payouts for the rest of your loved one’s life.
You should choose someone you trust to use the money in your loved one’s best interest. The beneficiary could be a spouse, sibling, trusted friend, or your loved one him/herself. There are some tax implications, so it’s important to talk to the person and/or a financial advisor before making a decision. You can choose or change your beneficiary at any point. If you don’t name a beneficiary, the money will be paid to your estate.
You’ll need to provide your date of birth, contact info, Social Security number for identity verification, and your bank details for premium payments. You’ll also need to have your loved one’s date of birth, Social Security number, and contact info on hand. The application only takes a few minutes from start to finish, and you won’t need to provide any health information or take any medical exams.
