No. of Recommendations: 0
The OP was talking about using life insurance as an alternative to an annuity with survivorship included...

It's a fairly slick method of hedging your bets....

Yes, this is exactly what I talking about. And thanks to your example above, I am able to do the cacluations. Here's what I found:

For $452,000 in federal insurance on DH:

- between his ages of 65-74, we would have more income than the survivor annuity alone.

- between his ages of 75-79, we would have the same income as we would with the survivor annuity.

- at age 80 and above, we would have $500 less each month than the survivor annuity would provide.

The life insurance amount could be reduced at any time, but can't be increased.

So, would YOU hedge your bets? I just might, depending on some further calculations -- if he were to die during these varying age ranges, what would I end up with?

This is very cool....

Thanks a bunch.

Print the post  


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.