whitestick
Recycles dryer sheets
- Joined
- Apr 5, 2005
- Messages
- 415
Tried search and didn't see this covered.
Here's the scenario. I have to make decision on pension payout, and only various forms of annuity streams are available. FP made suggesion of taking single payer annuity stream with COLA and use the differece from that versus the 100% option with COLA that I had planned on, to ensure DW had continuing income stream if I wasn't here. His suggestion was the normal Life Insurance Plan of sufficiently large value to provide that COLA income stream as an annuity that she would purchase at that time.
My question is, is there an offering that pays a COLA annuity upon my death to DW until her death, and if so where could I find the costs on that. I would think that the insurance company, instead of having to payout a fixed amount, would use their sharp pencils to figure out how much they actually would have to pay, using difference between life expectancy of men versus women, and only having to pay out in a stream of payments instead of lump sum, would allow them to price that at a very low rate (hopefully). FP claims he never heard of such a thing, but he didn't have the breadth of this forum's expertise and experience.
Does this make sense, and is this offered?
Here's the scenario. I have to make decision on pension payout, and only various forms of annuity streams are available. FP made suggesion of taking single payer annuity stream with COLA and use the differece from that versus the 100% option with COLA that I had planned on, to ensure DW had continuing income stream if I wasn't here. His suggestion was the normal Life Insurance Plan of sufficiently large value to provide that COLA income stream as an annuity that she would purchase at that time.
My question is, is there an offering that pays a COLA annuity upon my death to DW until her death, and if so where could I find the costs on that. I would think that the insurance company, instead of having to payout a fixed amount, would use their sharp pencils to figure out how much they actually would have to pay, using difference between life expectancy of men versus women, and only having to pay out in a stream of payments instead of lump sum, would allow them to price that at a very low rate (hopefully). FP claims he never heard of such a thing, but he didn't have the breadth of this forum's expertise and experience.
Does this make sense, and is this offered?