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Author: ruemars Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: term life ins.in retirement Date: 4/30/1999 12:05 AM
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First, WilliamLipp and zgriner, thanks for excellent info last request. Now! Going to buy term to cover wife due to maxing out pension. Otherwise, she would be left with nothing. Any thoughts for this arena? Thanks in advance.
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Author: zgriner Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 10246 of 75383
Subject: Re: term life ins.in retirement Date: 4/30/1999 1:25 AM
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Assuming that you have chosen the max pension benefit (no survivor payment, no minimum payment term), then you need to buy enough insurance to make up for the lost pension benefit, when invested, after you die. Let's assume the insurance money is invested into a reasonable stock portfolio, for growth and income, and that you want this principal and the income to grow, for inflation. You would need a $24,000 death benefit for each $100/month of income you want to replace. I base this on research that has been cited in the past, using a 20 to 1 ratio of principal to income. If you decrease the ratio, you need less death benefit, especially if you continue to save.

Zev

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