Protect Your Pension in Rhode Island Using Life Insurance

Why Pension Maximization?

Larger Pension | Tax-Free Income For Your Spouse |  Can Be Passed On to Your Children

You and your spouse, like many Rhode Island and Massachusetts residents, have sacrificed all your working lives and you finally look forward to collecting your well-earned pension.  About 6 months before your scheduled retirement date, you have to decide which pension options you'll take.  For a married couple, the default option is the "Joint Survivor" option, which reduces your maximum available benefit in order to provide your spouse with smaller, life-time benefit.  Your second choice is to take a larger benefit --Single Option--  that will cease upon your death, leaving your surviving spouse with no income.Your family's long-term security is important, but so is your lifestyle.  Are there any better options?

**Your pension income is permanent, and should be protected with Whole Life Insurance.  Get a quote

Actually, many people in Rhode Island and Massachusetts are utilizing life insurance to provide long-term survivor benefits, while taking the largest possible pension benefit to accomplish both goals.  This allows individuals on pensions to take the maximum benefit and provide a larger tax-free survivor benefit for your spouse and any surviving heirs.  This page is dedicated to showing you how pension maximization with life insurance can help to offer you and your family a better, more lucrative future. Sample whole life premiums are available.


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Benefits of Pension Maximization
with Whole Life Insurance

  • Larger monthly check for the retiree
  • Allows surviving spouse to maintain lifestyle
  • Tax-Free Income from insurance proceeds
  • Benefits can be passed on to your children.
  • Children can be listed as beneficiaries
  • If your spouse pre-deceases you, you can cancel the policy and get your cash values in a lump-sum.
             
 

Pension Max Calculator

 
         
  Life Policy Face Amount  
  Tax-Free  Monthly Income (enter negative number) ex: -2,000  
  If invested at this rate of return  
  No. of months the funds will last  
  Number of years the fund will last  
 

 
 

 

  

 For a graphical representation use this calculator

Common Pension Plan Options
 

Monthly Pension Income Single Plan

$4,000

  
 

Spousal benefit upon the death of pensioner with the single plan:

$0

  
 

Monthly Pension Income under Joint Survivor Plan (20% less)

$3,200

  
 

Spousal benefit upon the death of pensioner with Joint Survivor Plan  50% less than when you were living.

$1,600

  
  Spouse loses you and half of her income!  

Is there a better way?

  
 

Pension Maximization How it Works

What if you took the single option and used a portion of the $800 in additional income (--say $462/mo) to purchase a life insurance policy of $300,000 (healthy non-smoking male , age 50).   Your net monthly income increases by $338 per month (after adjusting for  your premium) and your spouse maintains a higher income after your death.

Since the average woman lives 8-10 years longer than her husband, Pension Maximization allows the family to have a larger income while you are living,  protects the surviving spouse from a major change in lifestyle upon your death, and provides the surviving spouse with tax-free income!

 In addition, this plan provides a death benefit to your children.  Your pension may not.

Use the calculator at the top of the page to decide how much coverage you need.

  

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