Recently I have started seeing Longevity Insurance (e.g. Deferred Fixed Income Annuity) as a possible strategy for those clients who are likely to live into advanced old age.
I like the concept at first pass: Buy a Deferred Fixed Income Annuity that would kick in if (once?) you reach a certain age.
For example, you could plan on your retirement plan fully funding your retirement years to the age of 85.
You could buy a deferred fixed income annuity that would kick in on your 85th year to start to supplement your costs, thus buffering the need to live fully off retirement assets.
This may be a flexible strategy for someone who is anxious about outliving their assets.
For someone who would lose sleep over having their assets in a stock/bond mix, this would give them a floor, albeit a more expensive one, than what a bond/stock mix can guarantee (with, of course, there being no guarantee with a bond/stock mix).
Annuities have a reputation for having higher costs and fees, so having an absolutely clear understanding of those costs would be necessary before buying a deferred fixed income annuity.
However, it, along with Long Term Care Insurance, may provide more assurance for someone who is anxious about what their advanced old age may look like, especially if they are widowed and/or have no children.
(Disclosure: I am a Fee-Only Financial Planner. My website is here.)