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Life Insurance
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Life Insurance:
Are you are considering option A vs. C and creating your own Survivor benefit? Life Insurance may be a great tool for your beneficiary and your family. Here are some questions to think about:
- What if you outlive your beneficiary? Yes, you “pop up” to option A, but you cannot choose anyone else and the entire extra premium you paid (difference between A vs. C)—which may be as high as $5,000 to $6,000 annually—is lost.
- What if you paid that amount for 30 years into retirement? That is more than $180,000.
- What if something tragic happened to you and your beneficiary at the same time? No one will receive anything from your pension.
- What if there is a divorce? Your ex-spouse will still collect your pension as the survivor.
These are some of the benefits:
- You may save tens of thousands over your lifetime
- Lump sum tax-free amount paid to the beneficiary vs. a monthly annuity payout
- You may choose a primary beneficiary and contingent beneficiaries
- Ability to change beneficiaries gives you more control in case the survivor pre-deceases the insured
- Most policies will allow you to decrease the face amount as needed, reducing your premium
- A trust can be set up as the contingent for educational reasons or special needs
- You can create a legacy
There are many types of Life insurance. What is the best type for your family?
- Term
- Universal life
- Whole life
- Variable Life
Remember these are irrevocable decisions you will be making. Make sure you consult with our experts that have been specializing in working with educators since 1996.