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
Insured peril in some property insurance policies that encompasses any accidental damage to insured property while being removed to safety from the immediate threat of damage by another ...
Federal legislation that established the old age survivors, disability, and health insurance (OASDHI). ...
Element usually found in industrial life insurance policies under which the insurance company upon the death of the insured under certain conditions is allowed to choose the beneficiary if ...
Type of commercial property policy that provides coverage for a business' indirect losses resulting from damages to the property of the business. Coverage normally contains a coinsurance ...
Hospital charges in addition to room and board. Miscellaneous expenses are covered under a basic hospital plan, with the limits of coverage expressed either as a multiple of the daily ...
Coverage for acts or omissions committed by an agent or broker resulting in adequate insurance in the event of a liability suit or property damage to a client. ...
Association formed to address the requirements of government risk pools. ...
Five primary sectors of insurance coverage. Their purposes are: LIFE INSURANCE provides income to a beneficiary in the event of the death of the insured. HEALTH INSURANCE provides two types ...
Individual licensed to sell securities to the public. For example, to sell variable annuities and variable life insurance products and mutual funds, an insurance agent is required to pass ...
Have a question or comment?
We're here to help.