Understanding Pension Maximization


The advantages of using LIFE INSURANCE to Maximize your Pension

1) The retiree will receive the highest possible retirement benefit form his or her pension.

This creates additional retirement income that can used for investing, travel, medical expenses, etc.

2) The premium for the life insurance policy will be less expensive than the survivorship option.

This makes life insurance a more cost effective way to ensure retirement income for your spouse. 

3) The death benefit is paid in a tax free lump sum to the beneficiary of the policy.

This allows the surviving spouse to satisfy any debts and also invest to ensure his or her prosperity.

4) Remainder of death benefit proceeds can be passed from surviving spouse to his or her heirs. 

As opposed to pension benefits, which will cease upon the death of the surviving spouse.

5) If the spouse pre-deceases the retiree, then the beneficiary on the life insurance policy can be changed.

A survivorship option only allows the retiree's spouse to receive benefits and cannot be passed to his or her children.

Frequently Asked Questions

Who is the ideal candidate for Pension Maximization?
Any reasonably healthy pre-retiree who will be retiring from a qualified pension plan, especially those who are considering taking a reduced pension option in order to provide continuing benefits to their surviving spouse.

Why should I consider Pension Maximization?
Because if you are going to select the Survivorship option from your pension, then you will essentially be paying a "premium" anyway. It only makes sense for all pre-retirees to consider their options and see which "premium" will be the most cost effective way for them to provide benefits to their surviving spouse.

At what age should I consider purchasing the insurance policy?
The sooner, and the younger, the better. As you get older, life insurance premiums will increase. You also run the risk of having a health change that may prevent you from qualifying for a reasonably priced policy. Therefore it makes sense to lock in a life insurance premium when you are young and healthy.

When is Pension Maximization not an option?
The concept of pension maximization does not work out as well for people who are in poor health or who use tobacco. The reason is simply because their health history will cause their applications to either be heavily rated or declined. If the premium for the life insurance policy is more expensive than the survivorship option, then it would make sense to select the option.

OMNI's highly trained representatives are available to help you MAXIMIZE your PENSION by calling 1-800-966-6641.