Our client has worked with Lockheed Martin for decades and will receive pension payouts when he retires. As he nears his retirement date, we are working together to determine how to maximize his pension payout, as he has six payout options to choose from to best benefit him and his wife.
To prepare for the upcoming pension selection, we are gathering offers from insurance carriers for term life insurance and universal life insurance so that he could claim the higher Life-Only benefit amount while having the insurance in place to protect against an unexpected premature passing affecting survivor benefits. Should he pass away prematurely after retirement, this allows his wife to have access to the income flow the pension would have provided.
If he does not pass away prematurely, the family can benefit from the highest pension payout amount, reducing drawdown on the portfolio and potentially leaving a tax-free legacy to the heirs.
