Retirement Plan Options
Definition of "Retirement plan options"
Choice among the following options made by retiree prior to retirement concerning the distribution of benefits:
- option since all income payments cease upon the death of the retiree.
- Monthly payments for lifetime of retiree with 100% survivor ship benefit income payments are paid during the time the retiree is alive and continue at the 100 percent level to a beneficiary after the death of the retiree. There is a significant reduction in the dollar amount of each monthly income payment to the retiree because beneficiary's number of payments are likely to continue for a long time.
- Monthly payments for lifetime of retiree subject to a minimum number guaranteed to be paid income payments are paid during the time the retiree is alive. Should the retiree die before receiving a minimum number of income payments, payments are made to a beneficiary until the minimum number has been paid, at which time all payments cease. The longer the minimum number of payments guaranteed, the greater the reduction in the dollar amounts of each monthly income payment to the retiree.
- Monthly payments for lifetime of retiree with 50% survivor ship benefit income payments paid during the time the retiree is alive and continue at the 50% level to a beneficiary after the death of the retiree. There is a reduction in the dollar amount of each monthly income payment to the retiree because beneficiary's number of payments are likely to continue for a long time.
- Monthly payments for a guaranteed number of years income payments are made for a stipulated number of years (period certain),not for the life of the retiree. The stipulated number of years is usually 5 years, 10 years, 15 years, or 20 years. Should the retiree die before receiving income payments for the stipulated time period, the beneficiary would receive income payments until the time period expires.
- . Lump sum (cash refund) accumulation in retiree's account distributed in one sum.
Popular Insurance Terms
Branch of knowledge dealing with the mathematics of insurance, including probabilities. It is used in ensuring that risks are carefully evaluated, that adequate premiums are charged for ...
Guarantee of payment of the original judgment of a court. When a judgment is appealed, a bond is usually required to guarantee that if the appeal is unsuccessful, funds would be available ...
Provision in an umbrella liability insurance policy under which the policy will pay those losses that come within the retention limits of the primary policy, but the primary policy cannot ...
Primary responsibility for overseeing the insurance industry that has rested with individual states since 1945, after Congress passed the MCCARRAN-FERGUSON ACT (PUBLIC LAW 15). In addition ...
Mathematical relationship resulting from experimentation. For example, the probability distribution for the possible number of heads from four tosses of a fair coin having both a head and a ...
Individual licensed to sell securities to the public. For example, to sell variable annuities and variable life insurance products and mutual funds, an insurance agent is required to pass ...
Physician who conducts physicals of applicants for life and/or health insurance. This physician is selected by the insurance company at its expense. ...
Demand without foundation, such as a claim submitted to an insurance company by an insured who caused a loss, or for a loss that never occurred. ...
Adjustment made to the statistics in a mortality table to provide an increase in the mortality rates above that expected for life insurance and a decrease in the mortality rates below that ...
Have a question or comment?
We're here to help.