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Subject:  Pension Maximization Question Date:  10/5/1999  12:15 PM
Author:  honda97 Number:  14239 of 102726

I am planning to retire in about 3 months, and my 
employer offers a pension to me.  I need to determine 
if it is wise to take the Single Life Only option
where I would receive the maximum pension money. 

The alternative seems to be to take the Joint and
Survivor option that will provide a lifetime income
for my spouse of about $30,000 when I die.  The
pension difference between the 100% (Single Life)
option, and the Joint Survivor option is about
$5,000/year to me.  

My financial planner has told me to take the Single
Life option (maximum money to me) and invest that 
$5,000 in a Variable Universal Life (VUL)Policy.  He 
says that if I pay into his policy for about 12 years,
I would not have to pay anymore (policy would be paid
up), and the benefit to my wife (annuitized) should be
more than she would have received (about 30k/year) if
I choose the Joint/Survivor option.  

I am looking for help in making the decision. 

Should I buy a VUL?  

If not a VUL, what else can I do to provide my spouse
 with an income equal to that of the benefit of the
 Joint Survivor option (about 30k/year)?  

By the way, the VUL is being offered thru American
 Express (IDS). I suspect they have a high cost.  

It seems good to me that I can pay into a VUL for about 
12 years and then not have to pay more, as contrasted
to a life time of decreased benefits from my pension
if I select the Joint Survivor option. The 12 years is 
an estimate and is based on a sustained growth over the
period of time. Less growth means additional payments.

Help please......

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