A product paying a guaranteed income until death, transferring to the insurer the longevity risk the individual cannot manage alone.
The lifetime annuity converts accumulated capital into a guaranteed income until the insured's last day, whatever their longevity. It is the product at the heart of life insurance's demographic shift, now covering the risk of living too long rather than dying too soon. It renders a real social service, a retiree left to themselves under-consumes out of fear of running short or over-consumes out of imprudence, whereas the annuity guarantees them a lifetime income. But it exposes the insurer to non-diversifiable longevity trend risk, for an annuitant who lives longer receives more payments, so erring on longevity is no longer prudent but ruinous.
US annuity sales reached 464 billion dollars in 2025, a fourth consecutive record, driven by the demographic wave known as Peak 65.
rente à vie, annuité viagère