Page 32 - Know-So Money, Hope-So Money, Retirement Secrets Wall Street Doesn't Want You to Know

After running the illustrations, I found a permanent Universal Life
policy that would cost $2,400 per year and provide a healthy

non-smoking male of 65 years $312,000 in death benefit. If you assume
you live five years after receiving your pension, and your wife is five
years younger, she could get an immediate annuity that would pay
$1,659 per month for life, tax-free. If she was in the 10% tax bracket,
that would be the equivalent of $1,843 per month in taxable income,
which is $43 per month more than she would have received from the
joint and survivor benefit.

How has this improved your situation over the joint benefit?

First, the spouse receives same net benefit she would have received

with the joint option.

Second, should she predecease you, you now have the option of
cancelling the policy and eliminating the ongoing cost of carrying a
joint option you cannot receive.

Third, should both of you die, your beneficiaries would receive
$312,000 in tax-free money, no matter how long you live and collect
the pension, and

Fourth, in some cases we can add additional benefits such as long-term
care, cash value, and other options to the policy. An example would be

additional cash build up that might serve as an inflation hedge as you
get older or provide capital for a personal banking scenario. The
possibilities are numerous.

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