Over70irregs
Well-Known Member
Driver was asking me Fri. Wife benefit or not. He was saying maybe get life insurance. Said Pension smaller according to options. (Oh yeah..asking for a friend.. Always wanted to say that)
Life only Pension?
- Thread starter Over70irregs
- Start date
Lots of wild card factors going to that equation.
35years
Gravy route
Essentially taking a lower monthly pension pay out in order for the spouse to get a pension when you die is buying a life insurance annuity with part of your monthly pension check.
Is it a good deal?
Find out from a insurance broker how much that survivor benefit annuity would cost you each month to purchace on your own.
Some factors on the price...Both your and your spouse's age and physical conditions.
Each couple's situation is different.
Better do the research. Lots of guys just blindly choose based on convenience or other's opinions.
Thousands and thousands at stake and they just blindly choose!
Is it a good deal?
Find out from a insurance broker how much that survivor benefit annuity would cost you each month to purchace on your own.
Some factors on the price...Both your and your spouse's age and physical conditions.
Each couple's situation is different.
Better do the research. Lots of guys just blindly choose based on convenience or other's opinions.
Thousands and thousands at stake and they just blindly choose!
Over70irregs
Well-Known Member
Taking a paycut to buy lowered pension take home. Good opening statement.
DELACROIX
In the Spirit of Honore' Daumier
Family comes first, you better check with the Wife before signing anything..word to the wise.
Years ago we had a feeder driver retire and passed away less than 3 years after.. he left his wife without any pension or life insurance.. she had to sell their house, boat and his toys in order to survive. Forget about the kids or his grandchildren.
We got a life insurance annuity over 25 years ago when it was cheap also long term health coverage for me and the misses also 17 years into that one, got it before age 50. You really have to plan ahead, you can get great savings if you buy these coverages in your thirties or forties.
Most married couples opt for the 1/2 payment to your spouse, mine would be only 150 less a month. Depends on your pension benefit and whether you want to risk or afford that kind of cut in pay before your SS kicks in.
Health coverages is another big issue, you never know your future.. things happen...
Years ago we had a feeder driver retire and passed away less than 3 years after.. he left his wife without any pension or life insurance.. she had to sell their house, boat and his toys in order to survive. Forget about the kids or his grandchildren.
We got a life insurance annuity over 25 years ago when it was cheap also long term health coverage for me and the misses also 17 years into that one, got it before age 50. You really have to plan ahead, you can get great savings if you buy these coverages in your thirties or forties.
Most married couples opt for the 1/2 payment to your spouse, mine would be only 150 less a month. Depends on your pension benefit and whether you want to risk or afford that kind of cut in pay before your SS kicks in.
Health coverages is another big issue, you never know your future.. things happen...
The theory of buying life insurance instead of taking a survival benefit does not add up
oldngray
nowhere special
If you don't opt for the survivor benefit your spouse has more incentive to keep you alive.
Just sayin' ...
That's why I tell her you can kill me now I have life insurance but not enough for you to live on happily ever after
The math does not support a non-spousal survivor option
Darmark7
Retired 2020. Not my Problem Anymore!
My decision was to take the 50% option. My thoughts on why I personally chose that was because my wife and I was both 57 yrs old when I retired. We are both in good health non smokers non drinkers and our parents are in their mid 80’s and are still alive so my thinking was we have a good chance of living past our 80’s. If I would of taken a life insurance policy for 25 yrs and then live past 25 yrs I would have to get a new policy when I’m over 80 and can you imagine what a life insurance policy will cost an 80 yr old? I get about $290 a month less to take the 50% option but I know that’s going to always be the same amount no matter how long I live. With Life insurance I could pay for 25 yrs and if I don’t die before 25 yrs I’m not going to get a dime and I would have to start another policy and who knows how much the premiums for an 80 yr old will be then! If we knew when we would die this would be such an easy decision. I still don’t know if I made the best decision but it was one I felt best about after weighing the options. Weigh your options and good luck!
I would love to hear why other people chose the option they did.
Insurance policies or not worth money
Wally
BrownCafe Innovator & King of Puns
You have to crunch the numbers. Most underestimated the amount of insurance needed. Insurance also is tax free.
You need to look the actuary tables my friend. If you crunch the numbers unless you're in pristine health and get the top a rating the cost of insurance will not offset the amount those inducted from the pension for the survival benefits.
Everyone looks at the 10-year term rates which is cheap what what happens if you die in 10 years and 1 day.
Your wife gets nothing and she gets no pension
Re-Raise
Well-Known Member
We decided to take the full amount each month with no survivor benefit.
We are both 56 yrs old and in good health. I know that could change at any time. We’ve been married for 34 yrs and our two daughters are done with college and have good jobs.
My wife has always worked at jobs that match her 401k contributions, so we have almost 800k in her accounts.
We have other investments and a farm trust that we collect from also. We have never paid for life insurance and have only had the insurance provided through our employment. We have no debt.
We decided together that she would be okay if something happened to me without the survivor benefit. I joke that it makes her take better care of me!
We are both 56 yrs old and in good health. I know that could change at any time. We’ve been married for 34 yrs and our two daughters are done with college and have good jobs.
My wife has always worked at jobs that match her 401k contributions, so we have almost 800k in her accounts.
We have other investments and a farm trust that we collect from also. We have never paid for life insurance and have only had the insurance provided through our employment. We have no debt.
We decided together that she would be okay if something happened to me without the survivor benefit. I joke that it makes her take better care of me!
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