Ask Terry Questions Pension/ annuity?

Pension/ annuity?

By Terry Savage on June 25, 2024 | Insurance & Annuities

I am a single male with no children. If a Single Life Annuity ($2,300 monthly) is selected and I die within a few years, my estate loses a large sum of money. If the 50% Joint & Contingent Annuity ($2,268 monthly – cousin is 77 years old) is selected, the 50% payout could minimize a large loss.
Is the 50% Joint & Contingent Option the best option? Monthly annuity is preferred over lump sum.

Terry Says

How much do you love your cousin?  Are you trying to get the most out of the insurance company (at a substantial cost to you)? Or are you trying to provide for your cousin?

And why an annuity anyway?? Don’t you already have Social Security?  That’s an inflation-adjusted annuity.  And  the kind you propose doesn’t have an inflation adjustment.

Why not just purchase coverage for your worst fear — the costly need for long term care.  If you don’t use the insurance, your beneficiary (your cousin?) can get the death benefit.

Sounds like someone is trying to sell you an annuity you likely don’t need.  Maybe spend some time with a FIDUCIARY FEE-ONLY financial planner who will explain some potentially better alternatives.  Pam Krueger Wealthramp – Terry Savage



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