PENSION MAXIMIZATION

PENSION MAXIMIZATION


PENSION MAX – MALE AGE 62 – NON SMOKER – EXAMPLE

Step 1

In this example the 62 year old PARTICIPANT would choose a PENSION MAXIMIZATION strategy by electing to receive the maximum “single life annuity” payout of $4,191 instead of the “100% joint and survivor annuity” paying $3,299. This provides the PARTICIPANT with an additional $892 per month to fund the PENSION MAX program.

Step 2
Union Legal will have chosen the Life Insurance Company which has the best rates and death benefit for a 62 year old non smoker where the benefit ($686,279) is guaranteed to age 95 for a guaranteed premium ($892/mo).

Step 3
The $892 premium is paid monthly by the PARTICIPANT to fund the life insurance contract for a death benefit of $686,279 payable to the SURVIVING SPOUSE. This is a TAX FREE BENEFIT TO THE SURVIVING SPOUSE.
Step 4A
At the death of the PARTICIPANT, the SURVIVING SPOUSE receives the death benefit of $686,279 and reinvests the lump sum in a Guarantee Return Annuity for monthly income WITHOUT RISK OF PRINCIPLE.

Step 4B
If the SPOUSE predeceases the PARTICIPANT, the death benefit of $686,279 is paid TAX FREE to the children or designated heirs at the death of the PARTICIPANT.

**WARNING**
If the SPOUSE predeceases the PARTICIPANT, the PARTICIPANT will not be able to change his pension choice from the “100% Joint and Survivor Annuity” to the “Single Life Annuity” option, COSTING THE PARTICIPANT $892 per month or $214,080 over 20 years.

COMPARISON

  • 100% JOINT AND SURVIVOR
  • At PARTICIPANT'S Death
  • Surviving Spouse $3,299 monthly
  • At SURVIVING SPOUSE'S Death
  • $0 – To Heirs

PENSION MAX SOLUTION

  • At PARTICIPANT'S Death w/ Pension MAX
  • Surviving Spouse $3,299 monthly (@5.7%)
  • At SURVIVING SPOUSE'S Death
  • $686,279 TAX FREE to Heirs

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