Re: Pension Question
At age 53 for both of you:
Assuming a $2,200 per month pension (50% survivor)
and a $ 2,000 pension for 100% survivor then:
your wife would need approx $ 213,000 lump sum (or equivalant life insurance) to buy an annuity that would replace 1/2 of the pension upon your death.
Factors to consider:
a) is there an inflation adjustment in your pension?
b) insurance would need to be for 20-30 + years coverage, can you get this coverage with level term for less than $200/month?
c) how secure is your company pension?
d) consider the three possibilities, the best, the worst and the most likely:
The best: you live another 40 years and your wife dies one day before or after you: best option 50% survivor.
The worst; you die and your wife lives another 30+ years, best option 100% survivor. The most likely: you and your wife live another 25 years, you die and she lives another 7-10 years, best option ?.
Just some things to consider.