No. of Recommendations: 0
Rayvt:

<<<<Only if he dies during the 15 year term of the policy.>>>>

"That's correct. I didn't discuss this, in order to keep it simple(r)."

But I thought that the omission made the earlier post misleading.

"There's no free lunch, so you have to protect yourself against the things that are important to you."

Ok.

"You can't protect against everything or the cose of the protection would be more than the value you are protecting.

65 + 15 = 80, so you would be protected up to age 80. Is this good enough? Everyone would have to decide that for themselves."


Assuming that they realized that the decision was being made now, at age 65.

"With my scenario, both spouses and the remaining family (who are always ignored in the options of pension payout methods) are covered until his 80th birthday. And if both spouses die before then, the descendents will still get something--which they won't in any of the usual options."

But what if H dies at 80.5 and W lives another 8 years, but without any part of the roughly 1100 in pension?

"Everyone's bummer case is when they pay all this money for the annuity (i.e., pension) and the annuity company keeps it all when/if you die easrly. In fact, that's the exact reason that Whole Life insurance came into existance--so that you'd get something back in the case where you didn't die early."

But what about paying 219/month for 15 years (gross $39,420) for insurance that was never collected, but which ultimately did not protect against the risk H dieing first and W surviving for years thereafter?

"I kinda figure that in 15 years you can manage to get your finances & investments arranged so that his death isn't a financial disaster to the wife."

That woudl be a large, unstated assumption.

"For myself, I went with the 10 Year Certain. We don't really need the pension but I'd be really bummed out if I die early and the pension company gets to keep all that money."

And here is hopng that you have many more healthy years to enjoy it.

Regards, JAFO
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.