Planning for your loved ones
September 25, 2017
We asked you to email us or post your questions about pre-retirement death benefits so that we could answer them during a Facebook Live session on the topic. Below are three of your FAQs and our answers.
Q: What happens if you outlive the two-year prognosis?
A: If you received a shortened-life expectancy pay out, then you or your survivors wouldn’t have any further entitlements from our pension plan.
If you go back to work, then you would start accruing a new pension benefit.
Q: Can I add my parents or grown children as beneficiaries for pre-retirement death benefits?
A: Yes. You can add your parents, siblings, children, or anyone you would like. Keep in mind though that you’ll likely outlive your parents. It’s always a good idea to review your beneficiary designation from time to time.
Q: Is naming a beneficiary mandatory?
A: No. If you don’t have a spouse, dependent children, or a named beneficiary any funds in the pension plan for pre-retirement death benefits will be paid to your estate as a lump sum. This lump sum will be subject to estate taxes and probate fees.
We recommend designating a beneficiary, as we’ll pay them directly and they’ll avoid those estate taxes and probate fees.
Did you miss the broadcast? Check it out below. You can also find all of our Facebook Live broadcasts here.