ronin
Thinks s/he gets paid by the post
- Joined
- Oct 21, 2003
- Messages
- 1,325
Anyone have experience or knowledge about a strategy known as pension maximization? The concept is taking the max on your pension by not opting for a survivor benefit (like 50% or whatever) and investing the difference in your max benefit from the reduced benefit on the option in life insurance. The idea is the death benefit replaces the survivor income given up on the pension, but a cash value accumulates so that if the beneficiary spouse predeceases the employee, rather than have lost that money in reduced benefits, one could surrender the policy for the cash value accumulated (shortened version of the pen max idea). Here's link to more info: Maximizing Your Client’s Pension