PENSION: LIFE ONLY vs 100% SURVIVOR

[East Texas]

We each took single life and with the some of the difference between single life and survivorship we each took out a universal life insurance policy naming each other as beneficiary with the kids as contingent beneficiaries. The reason(s) are, in both our pensions, once you select survivor the beneficiary cannot be changed. Also, we both have longevity in our families, including good health, and we wanted to maximize our cash flow.

Just a few other things to consider.

 

[Mulligan]

I told him this will guarantee that he lives longer than me!! Thank goodness for message boards. Sometimes my brain just can't think clearly, and needs a little help! In the scheme of things, we probably won't even notice the difference per month. He gets 50% of my teacher pension, which is $190/mo less than if he got nothing. We don't even notice. And, I would rather the extra money go to charity instead of his company keeping it. Or, I may lease a Lexus instead of driving my old Honda!Seriously, I do hope he lives a very long life!

Most teacher couples I know go the 50% option on each other, but they did not have the assets you have. As I mentioned I am very conservative, but with pensions, you have that luxury to be. Since that $130 a month or whatever it was it not taking food off your plate, I feel it is a very prudent thing to do. As for the 75% option, it is just deciding what kind of icing you want on the cake, based on your posted assets, and income needs.