CSRS Survivors Annuity vs Life Insurance -- Any Experiewnce Out There?

[Khotso]

Getting very close to finally pulling the plug - yahoo!

I read a good article today on the "survivorship" decision (link below). As a CSRS employee, I can set up a $1 survivor annuity to qualify my wife for health coverage when I retire. A full survivorship benefit costs about 10% of my CSRS annuity. For that amount minus taxes I'd pay on it, I may be able to purchase a term life insurance policy that would provide a similar annual benefit that can be transferred (inherited by) to our kids when we are both gone.

A co-worker of mine in another state has a financial advisor who claims to be able to set him up with a 30+ year term policy that would yield equal or more annual benefit to his spouse at about the same cost as the full survivor annuity. The advantage is heirs can inherit the balance A co-worker in another state has a financial advisor who claims to be able to set him up with a 30+ year term policy that would yield equal or more annual benefit to his spouse at about the same cost as the full survivor annuity. The advantage is heirs can inherit the remaining balance.

Does anyone have any experience doing this? Any advice, caveats or tips you can provide me as I explore it further?

Any recommendations about vendors, financial advisors I might consider working with?

Any thoughts, help or suggestions would be greatly appreciated! Oh yeah, here's the link to the article:

http://www.myfederalretirement.com/public/926.cfm

 

[CheapShot]

Really depends on your health? If you are healthy and get a good term rate that is not bad. The other thing is $1 might not be the best choice, you can put a dollar value that covers most of your spouses health costs, 150 a month, not a bad choice. Personally I can't get term so when I go I will need the 10 percent to cover my spouse. Good luck, also don't forget to look at long term care it really should be part of your planning.

 

[Khotso]

Really depends on your health? If you are healthy and get a good term rate that is not bad. The other thing is $1 might not be the best choice, you can put a dollar value that covers most of your spouses health costs, 150 a month, not a bad choice. Personally I can't get term so when I go I will need the 10 percent to cover my spouse. Good luck, also don't forget to look at long term care it really should be part of your planning.

Wow, someone actually responded -- finally. Thanks for your thoughts CheapShot. I'm thinking I'll go with the Survivor Benefit. I think I can always drop or reduce that (with my better half's concurrence that is) and go with a life insurance option later. I'm planning to live to 100 though, so tough choice. Lol.

Love your by-line by the way.