I have considered my survivor benefits and life insurance options and have chosen the best route to ensure my pension for my spouse or family member(s).
The survivor annuity is not life insurance, but it can function in much the same way when it comes to financial planning.
Think about it this way: you elect the survivor annuity option, and when you die, your spouse then receives your annuity benefit. That sounds an awful lot like life insurance, doesn’t it? It sure does! Both can fulfill similar functions, which is why they should be considered in conjunction with each other.
Whether a survivor annuity option or a private life insurance policy is right for you depends on your individual situation. It is simply a set of choices, each with its own pros and cons. For some people, life insurance is better. For others, electing a full survivor annuity and purchasing a life insurance policy might make the most financial sense. Understand the repercussions of your choices before you make them in order to maximize your benefits.
To help you gather even more information on this topic, please see our web site:
Survivor Benefits While Employed – FERS
Survivor Benefits in Retirement – FERS
Survivor Benefits While Employed – CSRS
Survivor Benefits in Retirement – CSRS