Definition of "Pension maximization"

Sharon Skinner real estate agent

Written by

Sharon Skinnerelite badge icon

Premier Sothebys International Realty

Plan under which life insurance is substituted for retirement income. Under the plan, a married individual selects a single life annuity payout from the pension plan, which will generate the maximum monthly income benefit while that individual is alive, with nothing being paid to the surviving spouse after the death of that individual. The higher income generated from the single life annuity, compared with that from a joint life and survivor ship annuity, is used to buy a life insurance policy on the married individual's life. If this individual dies first, the proceeds of the policy will be used to purchase an annuity for the lifetime of the spouse. Should the spouse die first, the married individual still has the higher income benefit from the single life annuity.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Effort by an individual to continue to receive disability income benefits by taking a continuing sickness or injury. ...

Circumstance where an insurance company takes the place of an insured in bringing a liability suit against a third party who caused injury to the insured. For example, if a third party, ...

One that provides group health or pension benefits for a multiemployer plan. To lower the cost, small firms band together to take advantage of the economies of large group underwriting. ...

Insurance company formed according to the legal requirements of a foreign country. In order for an alien insurer to be able to carry on general operations and sell its products in a ...

Direct payment to a new custodian for a retirement plan. This payment is not a taxable event since it is not a distribution. The payment must be between like plans; for example, one ...

Life insurance in which the debit system is used to collect premiums on a monthly basis. ...

In health insurance, the applicable average rate charged for a semiprivate room in the geographical area in which the charge is incurred. ...

In property insurance policies, provision that excludes the insurance company's liability for indemnification of the insured for the insured's expenses incurred in the demolition of ...

The definition of special acceptance explains how two insurance institutions work together for the benefit of the masses. In order to define what special acceptance means, we must ...

Popular Insurance Questions