Social Security Supplementation

[Justin Bilyj]

Many Seniors are living on a fixed income, fewer have pension plans.

I know its a foregone conclusion working FE that many will buy to help out the spouse supplement her income when the other passes away.

Question: How much does a couple lose in SS benefits when the other passes away?

Bonus Points for those that tell us about how VA benefits help survivors of dead spouses.

I have read that the spouses receive the larger of the two checks, not sure if its true or how true it is.

I just like to know enough to recommend FE for supplementing spouse's incomes and not mislead people.

Thank you,

p.s. Negative bonus points if JD and Greg fight within this thread, Under and Over is 10 posts

 

[somarco]

Social Security Publications

Social Security Survivors Benefits: Protection You and Your Family Can Count On


http://www.kiplinger.com/columns/ask/archive/understanding-social-security-survivor-benefits.html

 

[sellinmachine]

My reaction,two s/s checks are not enouigh to buy enuf ins to supplement the income of the survivor? In high dollsr cases, maybe. Heck, I just estimated I'd need 300Kcoverage.

You just posted this to ruin My Sunday, did'nt you? lol

 

[Norwayguy]

I believe the pension max concept can work with social security but when the client is already collecting benefits a FE policy would help with burial costs not replacing the smaller social security check.

 

[Justin Bilyj]

Why can't it do both?

 

[Norwayguy]

Why can't it do both?

Buying it that late in life doesn't make it cost effective.

 

[Justin Bilyj]

No kidding, but thats not my choice now is it. If they have a need, I can only help fill it. Regardless of their past.

 

[Norwayguy]

No kidding, but thats not my choice now is it. If they have a need, I can only help fill it. Regardless of their past.

Okay say average Social Security Check is $1200 a month which means replacing $14,400 per year for life would make the needed death benefit larger that the typical max benefit for a Fe policy.

 

[Justin Bilyj]

I didnt mean for it to be a permanent solution unfortunately. More an acclimation to a lowered standard of living. Many sad things to deal with when dealing with lower income individuals, and if this is one reason people buy a small wl policy towards the end, have the means to pay it, and desire to have it, its not my best interest to not provide it. Is this the majority of FE buyers? Nope. Is this a possible reason to buy FE? Yep...

 

[sellinmachine]

I know of case where she is 62, in early stages of Alzheimers, seldon worked in her lifeetime and her check is less than $300. She is scared $hatless of him dying first.

He is 86, retired brricklayer, imagine his check to be around 1300. Healthy as a horse, mind OK, but not as sharp as 5 yrs ago. He is $cared $hatless of her needing in home care, or worse nursing home in futere. Estimate their total net worth including savings home and cars approx 175,000. Most in their hile as her recenat med bill have depreciated his savings.

Second scenario, she is 20 years younger than him Several physical problems, back pain, steel rods in leg, and last winter diagnosed with cancer. She is on disability, aabout 800 mo but not yet medicare qualified, but gets too big check to get medicaid. so, no ins at all. What would you or I tell her that her life expectancy is?

He is on Soc Sec about 1100 mo or so, medicare, but nearly as healthy as the retired brick layer. His age apporox 70, smoker. has had circualtory problems 5-6 yrs ago. My guess maybe a table rating or maybe even graded. Yes, he would love to have income replacemnt on her for even 10 yrs, but how do we even get them insured income replacement wise in either one of these cases

Stressful situations for all of the parties in thse two situations. But I would hesitate to market your concept as not too many retired couples that need the concept would qualify affordably with the budgets they are limited to.

Damn, when I went to work work for $1 an hour many S.S recipients were gettin 200-300, maybe more in two recipient households. Try to convince me that S/S has out paced inflation, comparatively. As one of the more intelligent wal-mart greeters told me several lmonths ago, "Those younger generations intend to kill us off!"