How Can Retirement Income Protection Help Solve the Pension Benefit Dilemma?
Federal law allows a pension plan participant to waive the “jointandsurvivor” annuity payout requirement, with the written consent of his or her spouse.
This means that, with your spouse’s consent, you can elect to receive the MAXIMUM life income annuity payout at your retirement.
What, however, happens to your surviving spouse’s income and lifestyle if you should die first?
With a retirement income protection solution, you purchase sufficient life insurance TODAY to replace the pension income lost at your death, assuring that your spouse will have an adequate source of income after your death.
In making this important decision, you should evaluate the risks associated with retirement income protection funded with life insurance:
Your income after retirement must be sufficient to ensure that the life insurance policy premiums can be paid and coverage stay in force for your lifetime. Otherwise, your spouse may be without sufficient income after your death.
If your pension plan provides cost-of-living adjustments, will upward adjustments in the amount of life insurance be needed to replace lost cost-of-living adjustments after your death?
Does your company pension plan continue health insurance benefits to a surviving spouse and, if so, will it do so if you elect the life income option?
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