|
Benefits of a 457 Deferred Compensation Plan
- Tax Advantaged Savings. Contributions are made with before-tax dollars. Interest earned compounds on a tax-deferred basis.
- Maximize Your Existing Pension Plan. Your 457 Plan enables you to elect the maximum pension payment option (Life Option), yet still provides financial security for your spouse and/or heirs through the purchase of life insurance.
- Multiple Beneficiaries. Unlike your pension plan, the Life Insurance option with a 457 Plan allows you to name contingent beneficiaries, such as children or aging parents.
- Life Insurance. If you die prematurely, the policy’s death benefit provides financial security for your spouse and dependents.
- Benefits for Heirs. If you were to die and your spouse dies shortly after, then the remaining life insurance benefits can be passed on to your heirs, unlike the benefits from a pension plan.
- Maximize Your Retirement Savings. Life insurance is not just for your beneficiaries. You 457 plan life insurance policy has cash surrender values that you can borrow against, or withdraw, for emergencies or opportunities. The choice between a loan or a withdrawal is a valuable one, so talk to your agent.
Which pension option do you want?
- Full Pension, with no survivor benefits...OR
- Lower Pension, with survivor benefits...OR
- Full Pension, with survivor benefits?
We can help you plan ahead so that the tough choice is much easier to make, and you are able to maximize your pension benefits. Please call us today at (800) 680-5596.
Back to Lesson 4
Back to Retirement 101
|
