1. © 2013 VSA, LP Valid only if used prior to January 1, 2014. The information, general principles and conclusions presented in this
report are subject to local, state and federal laws and regulations, court cases and any revisions of same. While every care has
been taken in the preparation of this report, neither VSA, L.P. nor The National Underwriter is engaged in providing
legal, accounting, financial or other professional services. This report should not be used as a substitute for the professional advice
of an attorney, accountant, or other qualified professional.
Taking Control of
Your Pension Income
A Retirement
Income Protection Review
1a2-03

2. An Important Decision at Retirement
2Taking Control of Your Pension Income: A Retirement Income Protection Review
Did you know that, at retirement, you might have to make a difficult decision that could
negatively impact your future financial security and that of your spouse?
You Might Have an Important Decision to Make at Retirement!
The decision you make will determine
the amount of pension income you
receive for the rest of your life?
This decision is generally irreversible?
In making this decision, many people
unknowingly purchase the largest death
benefit they will ever buy and one over
which they have no control?
Did You Know...At retirement, you will have to decide
how your pension benefit will be paid
out for the rest of your life:
Should you elect to receive the maximum
retirement check each month for as long as you
live, with the condition that upon your
death, your spouse gets nothing?
Should you elect to receive a reduced
retirement check each month, with the
condition that upon your death, your spouse
will continue to receive an income?

3. Joint and Survivor Annuity Payout Requirement
3Taking Control of Your Pension Income: A Retirement Income Protection Review
What Is the Joint and Survivor Annuity Payout Requirement?
If you are married, federal law requires that, in order to protect your spouse, you must elect a
“joint and survivor” annuity payout option for your pension benefits. This guarantees that your
surviving spouse will continue to receive at least one-half of your pension income.
This concept is sound, except that you have to pay for a joint and survivor annuity payout option:
Your pension benefit is reduced for as long as you live.
If your spouse dies before you, your pension benefit cannot be restored to its unreduced
amount.
All pension payments cease when both you and your spouse die.
Let’s take a closer look at what this could mean to you...

4. Pension Benefit Option Examples
4Taking Control of Your Pension Income: A Retirement Income Protection Review
Let’s look at the results of the three most common pension benefit options, using a hypothetical
example:
If you receive your pension benefit under the life income option, you receive the
maximum lifetime pension payment. If you die first however, your surviving
spouse receives nothing after your death. For example:
Life Income
Option:
For as long as you live, you receive a monthly pension benefit of $2,000.
If you die first, however, your spouse will receive a monthly pension benefit of $0.
If your spouse dies first, your monthly pension benefit remains unchanged at $2,000.
If you elect the joint and one-half survivor option, you'll receive a lower lifetime
pension payment. On the other hand, if you die first, your surviving spouse will
continue to receive a lifetime pension benefit equal to 50% of your pension
benefit prior to your death. For example:
Joint and
One-Half
Survivor
Option:
continued on next slide

5. Pension Benefit Option Examples
5Taking Control of Your Pension Income: A Retirement Income Protection Review
For as long as you live, you receive a monthly pension benefit of $1,700 or about 85% of the
maximum life income option benefit.
If you die first, your spouse will receive a lifetime monthly pension benefit equal to
50% of your benefit, or $850 per month.
If your spouse dies first, however, your monthly pension benefit remains at $1,700.
With the joint and equal survivor option, you'll receive a significantly lower
lifetime pension payment. Your surviving spouse, however, will continue to
receive 100% of your pension benefit if you die first. For example:
Joint and Equal
Survivor Option:
For as long as you live, you receive a monthly pension benefit of $1,500 or about 75% of the
maximum life income option benefit.
If you die first, your spouse will receive a lifetime monthly pension benefit equal to
100% of your benefit, or $1,500 per month.
If your spouse dies first, however, your monthly pension benefit remains at $1,500.
There may, however, be an alternative to reducing your pension benefit by 15% to 25% in
order to provide your spouse with a survivor benefit...

6. A Potential Retirement Income Protection Solution Using Life Insurance
6Taking Control of Your Pension Income: A Retirement Income Protection Review
Federal law allows a pension plan participant to waive the “joint and survivor” annuity
payout requirement, with the written consent of his or her spouse.
This means that, with your spouse’s consent, you can elect to receive the MAXIMUM life
income annuity payout at your retirement.
What, however, happens to your surviving spouse’s income and lifestyle if you should die
first?
With a retirement income protection solution, you purchase sufficient life insurance TODAY
to replace the pension income lost at your death, assuring that your spouse will have an
adequate source of income after your death.
continued on next slide

7. A Potential Retirement Income Protection Solution Using Life Insurance
7Taking Control of Your Pension Income: A Retirement Income Protection Review
In making this important decision, you should evaluate the risks associated with retirement
income protection funded with life insurance:
Your income after retirement must be sufficient to ensure that the life insurance policy
premiums can be paid and coverage stay in force for your lifetime. Otherwise, your spouse
may be without sufficient income after your death.
If your pension plan provides cost-of-living adjustments, will upward adjustments in the
amount of life insurance be needed to replace lost cost-of-living adjustments after your
death?
Does your company pension plan continue health insurance benefits to a surviving spouse
and, if so, will it do so if you elect the life income option?

8. Retirement Income Comparison
8Taking Control of Your Pension Income: A Retirement Income Protection Review
You receive a reduced pension
benefit, the amount of which
is guaranteed.
Your spouse is guaranteed to
receive an amount equal to all
or a percentage of your
pension benefit.
You are guaranteed to
continue receiving a reduced
pension benefit for as long as
you live.
You receive your full pension benefit. There
is, however, a cost for the life insurance
protection.
Assuming the life insurance policy has been
kept in force by the payment of
premiums, your spouse can use the income-
tax-free death benefit to provide a lifetime
income.
You continue to receive your full pension
and can continue to pay the life insurance
premiums or use any cash value to provide
additional retirement income.
While you’re
both living...
If you die
first...
If your spouse
dies first...
Joint and Survivor Annuity
Payout Option
Retirement Income Protection Funded
with Life Insuranceor

9. Retirement Income Comparison
9Taking Control of Your Pension Income: A Retirement Income Protection Review
You cannot look to your
pension as a source of
additional emergency funds.
Receive nothing from your
pension when both you and
your spouse are deceased.
You can borrow or withdraw any available
cash value from the life insurance policy
(withdrawals and loans will reduce the
policy’s death benefit and cash value
available for use).
Can be named as beneficiaries of the life
insurance policy, if your spouse dies first
and you keep the policy in force.
If you have a
financial
emergency...
Your children
or other
heirs...
A properly-designed retirement income protection plan using life insurance enables you to take
your maximum pension benefit, retain control and flexibility and still assure your spouse’s
financial security upon your death, assuming the policy is kept in force by the payment of
premiums.
Joint and Survivor Annuity
Payout Option
Retirement Income Protection Funded
with Life Insuranceor

10. 10Taking Control of Your Pension Income: A Retirement Income Protection Review
Types of Cash Value Life Insurance
* Guarantees are subject to the claims-paying ability of the issuing insurance company.
Whole Life
Insurance
The policy owner pays a fixed, level premium and cash values accumulate at a
guaranteed* rate of return.
The insurance company promises to pay a guaranteed* death benefit.
Policy dividends may be payable.
Universal Life
Insurance
The policy owner can increase or decrease premium payments and select
from a level or increasing death benefit.
Cash value accumulations reflect current interest rates or are tied to a stock
market index, such as the S&P 500 Index.
There are four types of cash value life insurance
from which you can select a policy that best
satisfies your needs and objectives.
The primary differences in the types of cash
value life insurance fall into three categories:
continued on next slide
fixed or flexible premiums;
responsibility for investment
decisions; and
benefit guarantees or benefits based
on actual investment returns.

11. 11Taking Control of Your Pension Income: A Retirement Income Protection Review
Types of Cash Value Life Insurance
* Guarantees are subject to the claims-paying ability of the issuing insurance company.
Variable Life
Insurance
The policy owner pays a fixed, level premium and selects from a variety of
investment options for cash value accumulations. There is generally a
minimum guaranteed* death benefit and the potential for higher death
benefits, depending on the performance of the investment options selected.
There is no minimum guaranteed cash value. Instead, the cash value
available depends on the performance of the investment options selected.
Variable
Universal Life
Insurance
The policy owner can increase or decrease premium payments and select
from a variety of investment options for cash value accumulations. If a
minimum premium payment schedule is maintained, there may be a
minimum guaranteed* death benefit.
Cash values are not guaranteed. Instead, the cash value available, as well as
the potential for a higher death benefit, depend on the performance of the
investment options selected.
Your licensed financial adviser will discuss with you how specific cash value life insurance
products may work for you in your particular situation, including the product's
features, benefits, risks, charges and expenses.
Note:

12. Retirement Income Protection Action Checklist
12Taking Control of Your Pension Income: A Retirement Income Protection Review
Estimate the risks associated with retirement income
protection, including:
The Analysis …
Calculate the amount of life insurance needed to continue
the desired income to your surviving spouse.
Your retirement income must be sufficient to ensure that
the life insurance policy premiums can be paid and
coverage stay in force for your lifetime.
If your pension plan provides cost-of-living adjustments
(COLA), should upward adjustments in the amount of life
insurance be considered?
If your company’s pension plan continues health
insurance benefits to a surviving spouse, will it do so if
you elect the life income annuity payout option?
The Plan …
Determine the amount of
additional life insurance you must
purchase to fund the retirement
income protection plan.
Select the type of life insurance
policy.
Establish your insurability.
Arrange for payment of
premiums.

13. You Can Manage Your Finances
13Taking Control of Your Pension Income: A Retirement Income Protection Review
“It’s by managing your finances that you write the story
of your life. You are both the author and the story’s
principal character.
Resolve to perform what you ought.”
-- Benjamin Franklin