What does Pension Maximization mean? Read on to discover the definition & meaning of the term Pension Maximization - to help you better understand the language used in insurance policies.
Investment strategy under which a married retiree opts for a single life annuity (that yields highest monthly payment but only while he or she is alive) a part of whose income pays for his or her life insurance (thus acts like another annuity). If the retiree dies before his or spouse, the annuity will stop but the life insurance will support the spouse. This scheme, encouraged by life insurance companies, is criticized by some because it is very expensive if bought just a few years before retirement.
We hope the you have a better understanding of the meaning of Pension Maximization.