As individuals with pension plans get closer to retirement, they have an important decision to make. They need to determine whether or not to take a single life or a joint and survivor benefit on their pension plans. This is an irrevocable choice that can have a significant financial impact on the rest of their lives.
If a client decides to choose the single life benefit, his or her monthly benefit amount is larger than the joint and survivor option. The disadvantage of the single life benefit is that the surviving spouse will not receive any future income upon death. Usually the joint survivor (also known as the joint and 100% survivor) option provides a benefit amount of around 65-75% of the single benefit. The advantage of the joint option is the pension plan will continue to pay the surviving spouse with income until death.
Pension Max Client Profile
•Ages 50 – 65
•Concerned with retirement and have need for life insurance
•Pension income with reduced survivor benefit
•Client is preparing for the financial impact caused by loss of benefits for surviving spouse as a result of the joint life option.
•Male or Female
•Looking to maximize monthly pension income
Solution using Life Insurance
In order to help maximize income, the retiree takes the single life option, which provides a higher monthly benefit compared to the joint and survivor option. A portion of the extra monthly income is used to buy a guaranteed death benefit life insurance policy1. This life insurance policy will provide a guaranteed death benefit that can be used to provide income for the surviving spouse. As a result, the client is able to maximize his or her monthly benefit amount, while providing income for the surviving spouse.
Although the concept of pension maximization is fairly simple, determining whether it is a good fit for your pension scenario can be a complicated endeavor. For that reason, you should consult with Your Mintco Financial advisor to help you analyze the best course of action.
Mintco Financial Team of Independent Advisors Can Help
Mintco Financial Advisors provide solutions to all of your insurance needs, including pension maximization insurance. As retirement planning experts, we can help you analyze whether pension maximization is right for you.
A Mintco Financial advisor will be happy to help you explore this additional opportunity to provide the financial security you need to live the retirement of your dreams.
Call now at 813-964-7100 or visit our website for more information: www.MintcoFinancial.com