4. Longevity Insurance: Retirees save whole of their life for their afterlife retirement. But what if you run out of money at that stage. Here’s insurance for your ripe old age called longevity insurance. You need to invest a small amount at the age of 65 and your insurer will use it till you get 85. Only after then the company repays you in a monthly installments.

The money starts to come when you start having more medical bills than your daily grocery bills. Thus this way of investment makes long-term planning easier because the payout is resolute when you buy such policy.

But it has a major drawback as most of the people don’t get to the age of 85. As Ted Mathas, the Chief Operating Officer of New York Life Insurance Co. says, “it’s really inexpensive because half of the people will never get there, and if they do, they’ll only live three or four years beyond that threshold. So the cost is a fraction of what it might be if they had to manage these assets for 20 years. It provides great security in a defined period of time.”