Q: A co-worker is trying to convince me that taking an annuity without survivor benefit is more cost-effective than with the survivor benefit. He says it is better to take the full benefit and buy an insurance policy to protect my wife when I die. Besides the health insurance aspect of that decision, I argue that the survivor benefit is the better choice. I believe you wrote an article on why it is better to take the survivor annuity. Would you please repeat that advice and would you also point to where I may find more information on this question?
A: Better for who? Better for your life insurance agent, definitely. And you can probably enjoy a little more spending cash while you’re alive, but I doubt that, with the proper understanding, your spouse would choose this option. You can visit http://www.variplan.com, click on the link to “Who We Are,” then click on the “Archive” link at the top. Type “pension max” into the search window and you’ll find several pieces I have written on the topic.