Aug
4
2006
Life Insurance Can Maximize Your Pension Benefits
Author: Byron UdellIf you have a pension, then you face a tough decision at the time of your retirement: choosing a distribution plan.
There are two common options for pension distribution:
• The Single Life Option allows you to receive the highest possible monthly income throughout your life. The only problem is that your benefits will be paid ONLY as long as you live. At your death, your pension benefits die with you. That’s fine if you’re single, but what if you’re married? If still living, your spouse will be left with no monthly income from your pension plan.
• The second option is the Joint & Survivor Option. This option pays a reduced monthly pension (typically 75% to 85% of the single life benefit) for as long as either you or your spouse is alive. This option guarantees a payment for the surviving spouse. What happens if your spouse dies first? You will continue to receive the reduced income and you lose the gamble.
More after the jump…
