No. of Recommendations: 1
SoCalRN: "This is my husband's retirement plan. The $2600/month is a 50% joint and survivor annuity that does not adjust for inflation."

In your late 50s and good health, especially depending upon family history of longevity, inflation would worry me; you could easily be looking at 35-40+ years of furher living. Even at a modest 4% rate inflation would effectively cut the purchasing power of thatt amount in half before you hit 80 and in half again by your early 90s.

If I understand correctly, DH would otherwise receive $5,200/month, is that correct? How much permanent insurance could you buy on him for $2,600/month?

You would still net $2,600 a month as a couple; if something were to happen to you, DG could cancel the policy and then have $5,200; and if something happened to him, you would collect on the policy. One would really need to run the numbers.

In addition, are you sure that you are correct in your understanding of the pay-out.

"Joint & Survivor (50%..75%) reducing on FIRST or EITHER death: Full level payments are made as long as both the annuitant and joint annuitant are alive. Upon the death of either the annuitant or joint annuitant, reduced (50%...75%) level payments will continue to the survivor for as long he/she is alive."

http://www.annuityadvantage.com/immediate.htm

"If you select the 50% Joint-and-Survivor option, you will receive monthly benefits for your life, and upon your death, your named survivor will receive one-half of the amount you were receiving. This survivor benefit will be payable for the lifetime of your named survivor."

http://www.msrs.state.mn.us/judg/type.htmls#halfjsbb

It appears to me that if you DH were to die first, you would only collect $1,300/month from the annuity, which is not what I understood from your initial post.

Regards, JAFO
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