Article Contributed on: 6/29/2009 12:55:06 PM
An Broker of mine recently presented a situation to me regarding a Pension asking the question of, "when I die, it does not look like my spouse will have enough money to survive. I do not know what my options are." The individual in question is 52 years of age, female, very healthy.
The answer was simple: through analysis, this couple wanted to make sure there was a minimum of $4800 per month for 25 years after death of the breadwinner, the one which the pension is being paid to.
The design was using Life Insurance. Working backwards, determining $4800 per month for 25 years, we determined a life insurance policy of $1,019,223 would be needed. In the end, a total of $1,440,000 would be paid out. The total cost is $1,808 per month.
We presented another option with $100k lump sum paid initially, and $4800 paid monthly. The total death benefit is $1,119,223 with $1,540,000 paid out over 25 years. The premium is $1,983 per month.
This is one of many ways that life insurance can support benefits that are going to be paid to survivors. If the survivor was to pass before the benefits are paid out, the remaining benefit is paid to the designated beneficiary(s).
**A portion of each monthly payment and the final lump sum (if applicable) will be reported as taxable income to the
beneficiary, based on our understanding of current federal income tax law. We anticipate 29.20% reportable. We do not
offer tax advice. We do recommend that you consult a tax advisor on tax related issues.
Prior to the Insured's death, the policyowner may cancel the endorsement or adjust the payout schedule. Changes made
to the payout schedule may not result in an increase of the policy face amount or a policy face reduction below the
minimum face requirement of the plan. The beneficiary may not alter this endorsement as set by the policyowner.
If you are interested in looking at options for you and your family, do not hesitate to contact us at 303-425-4466 or 888-425-4466 ext. 225. Ask for Matt Benore.
www.denverwestip.info
mattb@benefitsblvd.com