Pension Maximization
Definition of "Pension maximization"
Plan under which life insurance is substituted for retirement income. Under the plan, a married individual selects a single life annuity payout from the pension plan, which will generate the maximum monthly income benefit while that individual is alive, with nothing being paid to the surviving spouse after the death of that individual. The higher income generated from the single life annuity, compared with that from a joint life and survivor ship annuity, is used to buy a life insurance policy on the married individual's life. If this individual dies first, the proceeds of the policy will be used to purchase an annuity for the lifetime of the spouse. Should the spouse die first, the married individual still has the higher income benefit from the single life annuity.
Popular Insurance Terms
Insurance company's growth rate of adjusted surplus divided by its adjusted liabilities. The greater this ratio, the more financially sound the insurance company, as the surplus would be ...
Latin phrase meaning "without which not," signifying a legal rule in tort and negligence cases. Under this rule, a plaintiff trying to prove that an injury was a direct result of a ...
Agreement prepared by an insurance company and offered to prospective insureds on a take-it-or-leave-it basis. If the contracts are misinterpreted by insureds, courts have ruled in their ...
Coverage on an all risks basis for goods in transit, bailment, and while on the premises of others. ...
Means of distribution that uses general agents rather than branch offices to sell life and health insurance. ...
Highly visible form of marketing communication with the public with these objectives: (1) encourage agents and brokers to sell insurance company products, (2) predispose customers to be ...
Property and/or liability coverage for a municipality. Municipalities are responsible for maintenance of through ways as well as a myriad of public services. Liability insurance for ...
Business interruption insurance in which the insured is indemnified for loss of earnings and payment of expenses resulting from adverse weather conditions. For example, the raining out of a ...
The regulation that, prior to its repeal, limited the amount of interest a time deposit at a bank could pay. ...
Have a question or comment?
We're here to help.