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Larry -

The concept proposed by your advisors is built on the premise that: (1) You might actually outlive your spouse, (2) The cost for the insurance policy will be no more than the pension payout difference between you selecting a survivor benefit & no survivor benefit. If you purchase the insurance policy & outlive your spouse you will continue to receive the higher benefit. If your spouse outlives you she will not get any pension money, but the insurance settlement will offset the income loss.

It's important to crunch the numbers to determine the total capital needed by your spouse & consider any adjustment for inflation that your pension might provide. Be sure the planner or advisor explains the process to your satisfaction, etc.

Finally, at your age term insurance is not usually a viable option. A whole life or variable universal life policy may be a better choice.

Good luck, PP
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