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Death Before Retirement

Death Before Retirement. -The Facts-. Meet Bill. Age 52 BYU Faculty for 20 years $54,000 Salary $4,500/month. Meet Bill’s Family. Spouse is 49 years old Three children, ages 22, 18, and 15. During a church basketball game the unthinkable happens. Fatal Heart Attack!.

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Death Before Retirement

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  1. Death Before Retirement -The Facts-

  2. Meet Bill • Age 52 • BYU Faculty for 20 years • $54,000 Salary • $4,500/month

  3. Meet Bill’s Family • Spouse is 49 years old • Three children, ages 22, 18, and 15

  4. During a church basketball game the unthinkable happens . . .

  5. Fatal Heart Attack!

  6. What income is available for Bill’s family?

  7. Life Insurance Payout Paid to beneficiary (spouse) – no taxes • Group Term Life $50,000 • Supplemental GTL 6 x salary = $360,000

  8. Savings • Estimated Accumulations • 3% salary increases • 5% savings + 4% match • 20 years Total = $169,339 • Transferred to primary beneficiary (surviving spouse)

  9. Master Retirement (MRP) Qualified Joint Survivor Annuity (QJSA) if taken at employee’s age:

  10. Social Security Family maximum $2,848/month

  11. Social Security

  12. What benefits are available for Bill’s family?

  13. Family Medical/Dental Insurance • Medical/Dental Insurance provided at no cost for a one-year period • Changed to name of surviving spouse • Dependent coverage during year limited to age 26, marriage, or employment with insurance

  14. Family Medical/Dental Insurance • After one year of coverage: • Because Bill has twenty or more years of MRP benefit credit: • Coverage continues and BYU pays its full part

  15. Family Medical/Dental Insurance • If after one year of coverage: • Bill had more than ten years, but less than twenty years of MRP benefit credit: • Coverage may continue and premiums are prorated

  16. Family Medical/Dental Insurance • If after one year of coverage: • Bill has less than ten years of MRP benefit credit: • Spouse and dependents are not eligible for continuing coverage • COBRA is an option for up to 36 months

  17. Family Life Insurance Coverage

  18. Family 24-Hour AD&D

  19. Tuition for Spouse • Full-time benefit continues • Benefit not extended to new spouse and step children if new marriage

  20. Tuition for Dependents • Changes from ½ tuition to full tuition • Benefit continues if accepted to BYU-Provo or BYU-Idaho until the child: • Obtains a Bachelor’s Degree from any university or college or • Completes 152 semester hours at BYU or • Reaches Age 30

  21. Strategy for Use of Benefits Group Term Life $50,000 • Pay burial expenses • Pay other family debts

  22. Spouse’s Monthly Income

  23. Additional Monthly Income

  24. What if Bill had been age 55?

  25. Challenge • Take time to review your benefits package • Make sure your beneficiaries are updated • Increase your life insurance if necessary • Obtain a projection from Social Security • Increase your savings if possible

  26. Your family will thank you.

  27. Representations made in this presentation are for educational purposes and should not replace an individual, personal consultation with your BYU benefits counselor or DMBA representative.

  28. Questions?

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