Pension Plan (annuity)

jeffery_scott76 · 04-26-2008, 06:02 AM

Hi all,

I've come across two life insurance plans of late!
One speaks of obtaining the cash value benefit if I die before the maturity of the policy, or once on maturity & then again talks of crediting the same worth to my beneficiary when I die after maturity.

The other one speaks of obtaining the covered amount once if I die before maturity or else starts accumulating an interest on it after 5 years from the date of the commencement of the coverage. This interest they say would come to me in the form of a pension to be dispatched to me monthly, quarterly or yearly as per my choice!

Now, my query is -which one do you all feel would be a better option for my family (provided that I wear a blue-collar mantle & never been through any white-collar job)?

Regards,
Jeff

jeffery_scott76 · 06-07-2008, 05:03 AM

Hi,

Does anyone have any answers to this one!!

Jeff

Mr. Bill · 06-07-2008, 09:30 AM

Don't you work for an FMO? Ask your boss.

Charpress · 06-08-2008, 07:05 PM

Let me see if I understand.

With plan one, you get the cash value before you die, or beneficiaries get it after you die. As far as I know, cash value is almost always lower than the death benefit. So, I'm lost as to what value that plan would have.

Plan 2 would depend entirely on whether the "pension" was lifetime and what guarantees were provided on growth versus cost of insurance. Umm... wouldn't an annuity with guaranteed growth in deferral and then guaranteed lifetime income be a better fit?

So, what is plan 3? I have a feeling that is coming next.

jeffery_scott76 · 06-14-2008, 08:14 AM

Don't you work for an FMO? Ask your boss.

No I don't. I'm just another free member of a community since its birth. But, I'd also like to get associated with this community!

So, what is plan 3? I have a feeling that is coming next.

No, this is a real problem to me.

Umm... wouldn't an annuity with guaranteed growth in deferral and then guaranteed lifetime income be a better fit?

Excellent idea it seems...only that the clauses state how the returns are associated with the future profits to get me somewhat skeptical..