FDX-over 65 S/Os
07-05-2012, 04:16 AM
#51
Gets Weekends Off
Joined APC: Sep 2006
Position: Looking for "Confirm Engine Out" button
Posts: 147
Huh? Why is this a big deal? Say you are a normally fiscal conservative guy that retires at age 60 (yeah few and far between with today's lot I know), house paid off, kids out of college, and you have a pension with survivor benefits - maybe even your wife has some sort of retirement plan too and you might even have a military pension with survivor benefit. You die the day after you retire - why is having that life insurance such a necessity? I'm having a hard time seeing why my spouse couldn't survive very well on the basics of what most of us would leave behind without a lavish life insurance policy?
07-05-2012, 04:27 AM
#52
Gets Weekends Off
Joined APC: May 2009
Posts: 556
this situation is rather simple, the Company did not plan well forecasting the eventual retirement of all FE positions and as such they have bought the current procedure that allows anyone over the regulated age to plow back without regard to staffing levels. At the end of the day, all guys on the FE list over 65 will have a job until the 727's are ALL off the line. Excess bids will do no good in this situation as long as there are 727's still burning jet fuel on revenue trips at Purple. That is one reason you will see the Company find a way to not let this situation fester, they will rip of the 727 band-aid quickly.
07-05-2012, 05:36 AM
#53
Gets Weekends Off
Joined APC: Dec 2007
Position: Retired
Posts: 404
07-05-2012, 05:46 AM
#54
Gets Weekends Off
Joined APC: Dec 2007
Position: Retired
Posts: 404
Gotta agree with you 100%. 50% FAE pension, 50% of your pension for her for the remainder of her life when you kick, home equity, 401K, B fund, etc.? I could live like a king if the roles were reversed. I was ok with term insurance while working but didn't renew once retired.
07-05-2012, 05:50 AM
#55
Gets Weekends Off
Joined APC: Dec 2007
Position: Retired
Posts: 404
I forgot about this option. They probably covered it in the ALPA Retrirement seminar but I think I was napping when they got to that section. Not sure how the mechanics would work: who to call (Mercer?), when to call since this check comes 6 months after you retire, etc. Probably worth looking in to though.
07-07-2012, 04:00 PM
#56
Gets Weekends Off
Joined APC: Sep 2006
Position: Retired
Posts: 3,717
Tuck,
Sorry to have taken so long in responding to your post, but here’s my answer. Of course, everyone is different, as far as their financial situation, marital situation, house situation, children/parent situation, future outlook (how one see’s their future) situation, etc, etc, so the things that I might feel are important to me, might not be of any importance to you.
That said, let’s start with our FedEx retirement and assume that we’ll make $10,000 a month in retirement. As well, let’s say we’re married with 2 children, either grown or younger and living at home (your pick), and we want to provide for our spouse and children. There are a number of options or selections you get to make, prior to your retirement, which can provide from 100% of your monthly income down to leaving your wife (and kids) nothing, if you were to die after retirement. So let’s select one that looks reasonable. Let’s select the 50% Joint & Survivor Annuity, which, as it says, will provide your spouse (and only your spouse) 50% of what you were getting in retirement, which is that $10,000 a month. So when you die, your spouse gets a nifty $5000 a month, until her death, at which time that annuity goes away.
The difference in age between you and your spouse is what determines what that annuity will cost you, because as we all know, nothing in this life is free. I’m not sure what the 50% plan will cost, but based on what they’ve shown me on my personalized practice retirement benefit calculation worksheet, which I’ve received from our Retirement Service Center, I know that it will be over $1000 a month and probably closer to 12 or $1300 a month. This means of the $10,000 that you expect to receive each month in retirement, you will lose $1300 right off the top. Then there’s Federal, State, and even, in some cases, Local Taxes to pay, which could reduce your golden egg by another 2 or 3 thousand dollars, each month. So that $10,000 now is down to (let’s use $2500 in taxes for this computation) roughly $6300. Not a bad haul. The good news is that when you die, your wife will get the full $5000, but will still have to deal with the tax issue. As well, from your pension, you’ve left your kids nothing at all, because once your wife dies, the pension drops dead too.
Now, let’s look at a insurance policy, any type (whole life, universal life, or term life) and see how things change. Of course the most important thing to know about insurance policies is that the insurance company will ask you some very easy questions when you’re applying. The first one is: How old are you; then: are you a smoker; then Do you consume alcohol; then (here’s where it gets harder) they have the nerve to ask you questions like: “have you ever had heart disease”; or “have you ever had cancer”; or any number of other probing health questions, both about you as well as your parents and siblings. They are going to use your answers to allow their actuaries to calculate, very accurately, your life expectancy, which will then tell them how much they should charge for your insurance policy.
So let’s suppose you select a $500,000 Universal Life Policy and because you’re in excellent health, and a young 65 year old male, with a good family health history, the policy costs you (my guess, based on a WAG) $10,000 a year. If you had bought that same policy 10 years earlier, at 55, it might have cost you $7000 a year. Had you bought 10 years before that, it would have cost you a bunch less, but you get the idea. The younger you are, the cheaper the policy is.
Now let’s say that you’ve retired. You estimate (which is all any of us can do, including the actuaries) that you will die at 85 and your wife will live another 10 years after that, because as we all know, woman never get the disease, but are carriers. You have that $500,000 insurance policy in force, and you’ve selected the Straight Life Annuity from the Fedex Express retirement plan, which costs you exactly zero, so you get the full $10,000 minus your $2500 in taxes, giving you roughly $1200 more income a month, which will allow you to cover those pesky insurance premiums each month, and still be ahead of the game. Cool, huh. Now the really good part. At some point in the future, you die. Your spouse, god bless her for having put up with your lazy, miserable butt for all these years, gets, not $5000 a month (minus taxes) for those next ten years, but a payout of $500,000, TAX FREE, which she can use as she sees fit, and pass the rest along to your kids, also TAX FREE (I believe).
So in a nutshell, there it is. Of course, as I said in the beginning, everything depends on your outlook on various aspects of your life. Do you want to help the kids? Pay for college for the grandkids? Leave some to charity? Take care of that family in South America? Etc, etc. You get it. Insurance is not for everybody, but it certainly is worth looking into, especially if you’re in good health, prior to your retirement. As for me, with my medical history, no normal insurance company will touch me with a ten foot pole. I have the group policy ($400,000) that FedEx provides us, but as someone else said, that goes away when I retire. I called Lincoln Financial, which holds that policy and asked if I could convert it to an individual policy as I retire. They said “Yes”, but then, without even asking me any questions at all, told me the policy would cost me roughly $4500 A QUARTER. I can't even begin to estimate what they'd charge me if they knew my health history.
I’ve not addressed a military retirement, home equity, 401K, B Fund, Rich Uncle Amos, etc, etc, because everyone is different. But suffice it to say, an insurance policy, from a reputable company can provide a level of security and options that our pension plan cannot.
JJ
Sorry to have taken so long in responding to your post, but here’s my answer. Of course, everyone is different, as far as their financial situation, marital situation, house situation, children/parent situation, future outlook (how one see’s their future) situation, etc, etc, so the things that I might feel are important to me, might not be of any importance to you.
That said, let’s start with our FedEx retirement and assume that we’ll make $10,000 a month in retirement. As well, let’s say we’re married with 2 children, either grown or younger and living at home (your pick), and we want to provide for our spouse and children. There are a number of options or selections you get to make, prior to your retirement, which can provide from 100% of your monthly income down to leaving your wife (and kids) nothing, if you were to die after retirement. So let’s select one that looks reasonable. Let’s select the 50% Joint & Survivor Annuity, which, as it says, will provide your spouse (and only your spouse) 50% of what you were getting in retirement, which is that $10,000 a month. So when you die, your spouse gets a nifty $5000 a month, until her death, at which time that annuity goes away.
The difference in age between you and your spouse is what determines what that annuity will cost you, because as we all know, nothing in this life is free. I’m not sure what the 50% plan will cost, but based on what they’ve shown me on my personalized practice retirement benefit calculation worksheet, which I’ve received from our Retirement Service Center, I know that it will be over $1000 a month and probably closer to 12 or $1300 a month. This means of the $10,000 that you expect to receive each month in retirement, you will lose $1300 right off the top. Then there’s Federal, State, and even, in some cases, Local Taxes to pay, which could reduce your golden egg by another 2 or 3 thousand dollars, each month. So that $10,000 now is down to (let’s use $2500 in taxes for this computation) roughly $6300. Not a bad haul. The good news is that when you die, your wife will get the full $5000, but will still have to deal with the tax issue. As well, from your pension, you’ve left your kids nothing at all, because once your wife dies, the pension drops dead too.
Now, let’s look at a insurance policy, any type (whole life, universal life, or term life) and see how things change. Of course the most important thing to know about insurance policies is that the insurance company will ask you some very easy questions when you’re applying. The first one is: How old are you; then: are you a smoker; then Do you consume alcohol; then (here’s where it gets harder) they have the nerve to ask you questions like: “have you ever had heart disease”; or “have you ever had cancer”; or any number of other probing health questions, both about you as well as your parents and siblings. They are going to use your answers to allow their actuaries to calculate, very accurately, your life expectancy, which will then tell them how much they should charge for your insurance policy.
So let’s suppose you select a $500,000 Universal Life Policy and because you’re in excellent health, and a young 65 year old male, with a good family health history, the policy costs you (my guess, based on a WAG) $10,000 a year. If you had bought that same policy 10 years earlier, at 55, it might have cost you $7000 a year. Had you bought 10 years before that, it would have cost you a bunch less, but you get the idea. The younger you are, the cheaper the policy is.
Now let’s say that you’ve retired. You estimate (which is all any of us can do, including the actuaries) that you will die at 85 and your wife will live another 10 years after that, because as we all know, woman never get the disease, but are carriers. You have that $500,000 insurance policy in force, and you’ve selected the Straight Life Annuity from the Fedex Express retirement plan, which costs you exactly zero, so you get the full $10,000 minus your $2500 in taxes, giving you roughly $1200 more income a month, which will allow you to cover those pesky insurance premiums each month, and still be ahead of the game. Cool, huh. Now the really good part. At some point in the future, you die. Your spouse, god bless her for having put up with your lazy, miserable butt for all these years, gets, not $5000 a month (minus taxes) for those next ten years, but a payout of $500,000, TAX FREE, which she can use as she sees fit, and pass the rest along to your kids, also TAX FREE (I believe).
So in a nutshell, there it is. Of course, as I said in the beginning, everything depends on your outlook on various aspects of your life. Do you want to help the kids? Pay for college for the grandkids? Leave some to charity? Take care of that family in South America? Etc, etc. You get it. Insurance is not for everybody, but it certainly is worth looking into, especially if you’re in good health, prior to your retirement. As for me, with my medical history, no normal insurance company will touch me with a ten foot pole. I have the group policy ($400,000) that FedEx provides us, but as someone else said, that goes away when I retire. I called Lincoln Financial, which holds that policy and asked if I could convert it to an individual policy as I retire. They said “Yes”, but then, without even asking me any questions at all, told me the policy would cost me roughly $4500 A QUARTER. I can't even begin to estimate what they'd charge me if they knew my health history.
I’ve not addressed a military retirement, home equity, 401K, B Fund, Rich Uncle Amos, etc, etc, because everyone is different. But suffice it to say, an insurance policy, from a reputable company can provide a level of security and options that our pension plan cannot.
JJ
07-07-2012, 05:17 PM
#57
Gets Weekends Off
Joined APC: Jun 2008
Position: Retired, again...
Posts: 608
Tuck,
Sorry to have taken so long in responding to your post, but here’s my answer. Of course, everyone is different, as far as their financial situation, marital situation, house situation, children/parent situation, future outlook (how one see’s their future) situation, etc, etc, so the things that I might feel are important to me, might not be of any importance to you.
That said, let’s start with our FedEx retirement and assume that we’ll make $10,000 a month in retirement. As well, let’s say we’re married with 2 children, either grown or younger and living at home (your pick), and we want to provide for our spouse and children. There are a number of options or selections you get to make, prior to your retirement, which can provide from 100% of your monthly income down to leaving your wife (and kids) nothing, if you were to die after retirement. So let’s select one that looks reasonable. Let’s select the 50% Joint & Survivor Annuity, which, as it says, will provide your spouse (and only your spouse) 50% of what you were getting in retirement, which is that $10,000 a month. So when you die, your spouse gets a nifty $5000 a month, until her death, at which time that annuity goes away.
The difference in age between you and your spouse is what determines what that annuity will cost you, because as we all know, nothing in this life is free. I’m not sure what the 50% plan will cost, but based on what they’ve shown me on my personalized practice retirement benefit calculation worksheet, which I’ve received from our Retirement Service Center, I know that it will be over $1000 a month and probably closer to 12 or $1300 a month. This means of the $10,000 that you expect to receive each month in retirement, you will lose $1300 right off the top. Then there’s Federal, State, and even, in some cases, Local Taxes to pay, which could reduce your golden egg by another 2 or 3 thousand dollars, each month. So that $10,000 now is down to (let’s use $2500 in taxes for this computation) roughly $6300. Not a bad haul. The good news is that when you die, your wife will get the full $5000, but will still have to deal with the tax issue. As well, from your pension, you’ve left your kids nothing at all, because once your wife dies, the pension drops dead too.
Now, let’s look at a insurance policy, any type (whole life, universal life, or term life) and see how things change. Of course the most important thing to know about insurance policies is that the insurance company will ask you some very easy questions when you’re applying. The first one is: How old are you; then: are you a smoker; then Do you consume alcohol; then (here’s where it gets harder) they have the nerve to ask you questions like: “have you ever had heart disease”; or “have you ever had cancer”; or any number of other probing health questions, both about you as well as your parents and siblings. They are going to use your answers to allow their actuaries to calculate, very accurately, your life expectancy, which will then tell them how much they should charge for your insurance policy.
So let’s suppose you select a $500,000 Universal Life Policy and because you’re in excellent health, and a young 65 year old male, with a good family health history, the policy costs you (my guess, based on a WAG) $10,000 a year. If you had bought that same policy 10 years earlier, at 55, it might have cost you $7000 a year. Had you bought 10 years before that, it would have cost you a bunch less, but you get the idea. The younger you are, the cheaper the policy is.
Now let’s say that you’ve retired. You estimate (which is all any of us can do, including the actuaries) that you will die at 85 and your wife will live another 10 years after that, because as we all know, woman never get the disease, but are carriers. You have that $500,000 insurance policy in force, and you’ve selected the Straight Life Annuity from the Fedex Express retirement plan, which costs you exactly zero, so you get the full $10,000 minus your $2500 in taxes, giving you roughly $1200 more income a month, which will allow you to cover those pesky insurance premiums each month, and still be ahead of the game. Cool, huh. Now the really good part. At some point in the future, you die. Your spouse, god bless her for having put up with your lazy, miserable butt for all these years, gets, not $5000 a month (minus taxes) for those next ten years, but a payout of $500,000, TAX FREE, which she can use as she sees fit, and pass the rest along to your kids, also TAX FREE (I believe).
So in a nutshell, there it is. Of course, as I said in the beginning, everything depends on your outlook on various aspects of your life. Do you want to help the kids? Pay for college for the grandkids? Leave some to charity? Take care of that family in South America? Etc, etc. You get it. Insurance is not for everybody, but it certainly is worth looking into, especially if you’re in good health, prior to your retirement. As for me, with my medical history, no normal insurance company will touch me with a ten foot pole. I have the group policy ($400,000) that FedEx provides us, but as someone else said, that goes away when I retire. I called Lincoln Financial, which holds that policy and asked if I could convert it to an individual policy as I retire. They said “Yes”, but then, without even asking me any questions at all, told me the policy would cost me roughly $4500 A QUARTER. I can't even begin to estimate what they'd charge me if they knew my health history.
I’ve not addressed a military retirement, home equity, 401K, B Fund, Rich Uncle Amos, etc, etc, because everyone is different. But suffice it to say, an insurance policy, from a reputable company can provide a level of security and options that our pension plan cannot.
JJ
Sorry to have taken so long in responding to your post, but here’s my answer. Of course, everyone is different, as far as their financial situation, marital situation, house situation, children/parent situation, future outlook (how one see’s their future) situation, etc, etc, so the things that I might feel are important to me, might not be of any importance to you.
That said, let’s start with our FedEx retirement and assume that we’ll make $10,000 a month in retirement. As well, let’s say we’re married with 2 children, either grown or younger and living at home (your pick), and we want to provide for our spouse and children. There are a number of options or selections you get to make, prior to your retirement, which can provide from 100% of your monthly income down to leaving your wife (and kids) nothing, if you were to die after retirement. So let’s select one that looks reasonable. Let’s select the 50% Joint & Survivor Annuity, which, as it says, will provide your spouse (and only your spouse) 50% of what you were getting in retirement, which is that $10,000 a month. So when you die, your spouse gets a nifty $5000 a month, until her death, at which time that annuity goes away.
The difference in age between you and your spouse is what determines what that annuity will cost you, because as we all know, nothing in this life is free. I’m not sure what the 50% plan will cost, but based on what they’ve shown me on my personalized practice retirement benefit calculation worksheet, which I’ve received from our Retirement Service Center, I know that it will be over $1000 a month and probably closer to 12 or $1300 a month. This means of the $10,000 that you expect to receive each month in retirement, you will lose $1300 right off the top. Then there’s Federal, State, and even, in some cases, Local Taxes to pay, which could reduce your golden egg by another 2 or 3 thousand dollars, each month. So that $10,000 now is down to (let’s use $2500 in taxes for this computation) roughly $6300. Not a bad haul. The good news is that when you die, your wife will get the full $5000, but will still have to deal with the tax issue. As well, from your pension, you’ve left your kids nothing at all, because once your wife dies, the pension drops dead too.
Now, let’s look at a insurance policy, any type (whole life, universal life, or term life) and see how things change. Of course the most important thing to know about insurance policies is that the insurance company will ask you some very easy questions when you’re applying. The first one is: How old are you; then: are you a smoker; then Do you consume alcohol; then (here’s where it gets harder) they have the nerve to ask you questions like: “have you ever had heart disease”; or “have you ever had cancer”; or any number of other probing health questions, both about you as well as your parents and siblings. They are going to use your answers to allow their actuaries to calculate, very accurately, your life expectancy, which will then tell them how much they should charge for your insurance policy.
So let’s suppose you select a $500,000 Universal Life Policy and because you’re in excellent health, and a young 65 year old male, with a good family health history, the policy costs you (my guess, based on a WAG) $10,000 a year. If you had bought that same policy 10 years earlier, at 55, it might have cost you $7000 a year. Had you bought 10 years before that, it would have cost you a bunch less, but you get the idea. The younger you are, the cheaper the policy is.
Now let’s say that you’ve retired. You estimate (which is all any of us can do, including the actuaries) that you will die at 85 and your wife will live another 10 years after that, because as we all know, woman never get the disease, but are carriers. You have that $500,000 insurance policy in force, and you’ve selected the Straight Life Annuity from the Fedex Express retirement plan, which costs you exactly zero, so you get the full $10,000 minus your $2500 in taxes, giving you roughly $1200 more income a month, which will allow you to cover those pesky insurance premiums each month, and still be ahead of the game. Cool, huh. Now the really good part. At some point in the future, you die. Your spouse, god bless her for having put up with your lazy, miserable butt for all these years, gets, not $5000 a month (minus taxes) for those next ten years, but a payout of $500,000, TAX FREE, which she can use as she sees fit, and pass the rest along to your kids, also TAX FREE (I believe).
So in a nutshell, there it is. Of course, as I said in the beginning, everything depends on your outlook on various aspects of your life. Do you want to help the kids? Pay for college for the grandkids? Leave some to charity? Take care of that family in South America? Etc, etc. You get it. Insurance is not for everybody, but it certainly is worth looking into, especially if you’re in good health, prior to your retirement. As for me, with my medical history, no normal insurance company will touch me with a ten foot pole. I have the group policy ($400,000) that FedEx provides us, but as someone else said, that goes away when I retire. I called Lincoln Financial, which holds that policy and asked if I could convert it to an individual policy as I retire. They said “Yes”, but then, without even asking me any questions at all, told me the policy would cost me roughly $4500 A QUARTER. I can't even begin to estimate what they'd charge me if they knew my health history.
I’ve not addressed a military retirement, home equity, 401K, B Fund, Rich Uncle Amos, etc, etc, because everyone is different. But suffice it to say, an insurance policy, from a reputable company can provide a level of security and options that our pension plan cannot.
JJ
Check your numbers. When I retired from FDX, I was allowed to "export" 300K term life. It costs me $405 per quarter.....300k was the most I could export from any of my FDX policies.
If you plan on turning down the spousal survivor annuity, you MUST start the post retirement term life insurance applications at LEAST 6 months prior to your retirement.........otherwise, you may be in for a nasty little surprise.
I elected to forego the approx $2000 monthly reduction in my retirement pay for survivor annuity benefits. I started about 3 months before retirement....deadline for the election came before I had an answer on the 2 million term policy I applied for.......you can guess the rest.....after several insurance company physicals, I was turned down due to a new kidney disease test called EGFR......I'm healthy, my nephrologist says it is an over-diagnosed test.....and come see her in a year. Nevertheless, NO insurance company will touch me for life insurance in any amount......so, I have 300k exported from FDX,and no survivor annuity.
Fortunately, I am eligible for a big term life policy as long as i continue to fly at DAL....and yes, I've always maintained a Class I FAA certificate....Moral: get your post retirement term life question answered well before you decide on a survivor annuity, and beware the EGFR....every insurance company will try to use it to turn you down.
Regards,
BG
Thread
Thread Starter
Forum
Replies
Last Post
