How to use life insurance to take your maximum pension payout (and beat the tax man).

BLUF (Bottom Line Up Front):   If you have over 5 years till you retire with a pension, this strategy can help you take the maximum  pension payout and protect your family (and create a bunch of tax free money)

IN THIS VIDEO I lay out the 3 different options for electing a pension for people who are about to retire.

Those options typically come down to:

1️⃣Taking the maximum payout

2️⃣Taking a lower payout and protecting your family

3️⃣Rolling your pension out and trying to have both

All those strategys have advantages and disadvantages, but can mean the difference between a good and a great retirement.

Another strategy, if you impliment it early enough, is to use a permanent life insurance policy to cover the penioners life, take the max payout, and still leave behind money for the spouse and kids to live on.

But what does it cost, how does it work, is it a good idea?

As with all financial tools (and you are going to hate this answer)…it depends.  It depends on things like

1️⃣Time left to retirement

2️⃣Your financial planning golas

3️⃣Things like health and budget

The basic premise is that the reason people elect joint coverage is that pension income needs to provide for a spouse in their retirement.  Most clients suck it up and enjoy less spending money so they know that when they pass, their spouse is provided for.

What if the spouse passes before the pensioner?

What if there is a divorce?

What if the spouse and the pensioner pass at the same time?

All these things are worries that I talk about all the time with when doing a financial plan for my police, fire, nurse, teachers, and other near retirees that have a guaranteed income pension.

 

Click below 👇to watch how this strategy works