• Question
  • Purchase Life Insurance to replace lost pension

    Asked by a 72 year old woman from Chandler, AZ on 4/23/2015

    I won't have my husband's pension if he passes, is life insurance a good purchase in order to pay off the mortgage and maintain my standard of living with the death benefit? We can afford the premiums but I won't be able to stay in the house without his pension, he is several years older than I.

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  • Categories: Retirement Planning, Guaranteeing Income

Answers

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  • If you don't get some fraction of his pension, you would have had to sign a document with his employer agreeing to this. Rather than buying life insurance, you should consider putting the money for the premiums into savings. Then when he passes you can make a decision whether to buy an immediate annuity with lifetime payments with those savings.

  • Login to rate this answer:   Answered on 5/2/2015
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.