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Pixy says:

It is the logic of the life insurance salesman who wants to sell you a policy which has your wife as the beneficiary. In essence, it says spend up to the difference of a full pension versus what you would receive if you took a joint pension. (i.e., the one that would pay your wife a benefit when you die). Then, if you die, your spouse could use the life insurance to generate at least enough income to pay her what she would have received had you taken the joint pension, and hopefully more.

In my former life, I tried to sell a few of these deals, and found it was a difficult thing to do...Age, company underwriting, cost, etc. The biggest problem, its a gamble that the pensioner is going to outlive the spouse, as that is the only good reason to seriously consider it if you are going to spend the same amount for insurance as the reduction in pension would be. Unless the spouse is in very bad health, not a smart gamble.

Also, it is my understanding that a spouse has to sign off on all these elections, so it is his or her final decision.

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