And L3Harris employees should consider life insurance as part of their retirement planning - to protect loved ones, pay off debts and leave a legacy - to give them financial security in their absence - says Tyson Mavar, representative of the Retirement Group, part of Wealth Enhancement Group.
Life insurance can give you peace of mind in retirement - protecting your family and your wealth from the unexpected - Wesley Boudreaux, of the Retirement Group, a division of Wealth Enhancement Group.
In this article, we will discuss:
1. Life insurance for retirees - especially L3Harris types.
2. Financial dependents, outstanding debt and savings are key factors determining life insurance needs.
3. The role of life insurance in securing a financial future and leaving a legacy for loved ones.
More than 60% of Americans who feel confident they understand life insurance are insured. Nonetheless, life insurance covers less than 20% of those who do not know about life insurance. See if life insurance is a good asset for retirees if you work for L3Harris and are considering retiring. Life insurance buyers can get free price quotes from their preferred insurers before making a commitment. But, despite the variety and ease of getting coverage, more than two out of every three Americans say they lack adequate life insurance. L3Harris employees must consider whether life insurance is necessary for retirement.
Financial Dependents:
L3Harris employees with financial dependents must secure them at any age or position. A retiree with a spouse and children who depend on their retirement income might profit from an active life insurance policy. A full four in five (44%) American households would be broke within six months if the primary wage earner were to lose his or her job. More than a quarter (28%) would go broke in a month. The insured's dependents would not be left broke if they died; they would keep their income. 75% of Americans with life insurance say they would still feel financially secure if their main wage earner died. But only about half of uninsured Americans say they would be financially safe in such circumstances. And even though life insurance is commonplace, just owning a policy does not necessarily provide adequate protection.
More than 100 million Americans are underinsured or uninsured, according to estimates. Taken together, L3Harris employees then need to determine how much life insurance they need. That depends on your standard of living, monthly contribution, overall financial position, and situation. Ideally, you would have enough life insurance to replace lost income on death. Even so, L3Harris employees know that buying insurance beyond this scenario is possible - and it is your job to determine what coverage meets their needs.
Outstanding Debt:
L3Harris employees with outstanding debt that passes to beneficiaries upon death should buy life insurance now. Around forty percent will leave a financial burden to a loved one. Life insurance would relieve your beneficiaries of financial responsibility should you die unexpectedly. For instance, you should buy a policy that lets you repay a mortgage loan. Should you be unable to pay off your mortgage on your own with your income, you may want to buy coverage at least equal to that amount. This way, L3Harris employees can lock in the mortgage balance should they die.
Savings:
L3Harris employees who have not left a substantial inheritance for their beneficiaries can buy life insurance as a supplement. As savings aren't restricted to cash account balances either, the prospect of buying a policy for hundreds of thousands of dollars for less than USD 100 a month might be tempting. L3Harris employees should research insurance benefits, limits, and price ranges before purchasing to avoid overspending and understating.
A study by research and consulting firm LIMRA found that life insurance ownership among Americans age 55 and older has steadily increased over the past decade. In 2011, only 63% of this age group had life insurance coverage - by 2021, it was 70%. That shows more L3Harris retirees realize life insurance can protect their heirs financially. The study also noted that reasons for getting life insurance in this age group included replacing lost income, paying for funeral expenses and leaving an inheritance.
Whether L3Harris employees need insurance depends on their situation. If you have dependents and beneficiaries, life insurance could give them income when you die. Your buying life insurance could spare your family obligations that would have been passed down if you were in debt. A life insurance policy could be an alternative if you cannot save a large nest egg for your heirs. L3Harris employees uncertain whether to buy coverage should seek professional financial advice. Get a free cash flow analysis when you contact The Retirement Group to see which option best fits your needs.
Now picture your retirement as a garden that you have grown over time. You've sodded the seeds of financial security and watched them grow into wealth. As a garden needs protection so does your retirement - and life insurance can put a fence around your financial legacy.
Consider life insurance like the evergreen hedges that preserve your garden. Like hedges protect your garden from outside dangers, life insurance covers your family from financial strain should you die. That way, your labors will continue to feed your family - giving them a source of income and paying off any debts you may have left behind.
As each plant in your garden has a purpose, so does life insurance in retirement. It may replace lost income, pay down outstanding debts such as a mortgage, or provide a substantial cushion for your beneficiaries. Sow in your financial garden and bolster it with the right life insurance coverage - and you plant a seed that will bear fruit in your absence.
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- Corporate Employees: 8 Factors When Choosing a Mutual Fund
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- Stages of Retirement for Corporate Employees
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- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
Also, as you consider retirement, plant a garden of financial security with life insurance. A well-tended garden brings joy and security, too - and so will life insurance - the assurance that your family and your legacy will thrive long after you retire from work.
Sources:
1. Rodeck, David. 'Do You Need Life Insurance in Retirement?' Investopedia , 22 June 2023, https://www.investopedia.com/articles/personal-finance/010716/do-you-need-life-insurance-after-you-retire.asp .
2. 'Life Insurance Statistics in 2025.' The Zebra , March 2024, https://www.thezebra.com/resources/research/life-insurance-statistics/?utm_source=chatgpt.com .
3. 'What is a Life Insurance Retirement Plan (LIRP)?' Aflac , 24 Aug. 2023, https://www.aflac.com/resources/life-insurance/life-insurance-retirement-plans-lirp.aspx .
4. 'Life Insurance Benefits for Retired Workers.' Bureau of Labor Statistics , Sept. 1990, https://www.bls.gov/opub/mlr/1990/09/Art2full.pdf .
5. '10 Reasons Why You Need Life Insurance in Retirement.' GBS Life , 15 June 2016, https://www.gbslife.com/media/28501/10-reasons-retirement.pdf .
What specific factors should L3Harris Technologies employees consider when determining the most suitable form of pension benefit at retirement? Employees of L3Harris Technologies may have various options, such as life annuities, contingent annuities, and lump-sum payouts. Understanding the implications of each option, including tax treatments and benefit guarantees, can be crucial in making a decision that aligns with long-term financial goals. It is also important to consider how the selected form may affect survivor benefits and overall retirement income planning.
Pension Options at Retirement: L3Harris Technologies employees have various pension benefit options to consider at retirement, such as life annuities, contingent annuities, and lump-sum payouts(L3Harris Technologies I…). Each option has different tax treatments, survivor benefits, and guarantees. For example, selecting a life annuity ensures a fixed monthly payment for life, while a lump-sum payout might offer more flexibility but comes with immediate tax implications. Employees should evaluate how each option aligns with their long-term financial goals and whether it provides adequate survivor protection for dependents(L3Harris Technologies I…).
How does L3Harris Technologies determine eligibility for early retirement, and what implications does this have for pension benefits? Employees should familiarize themselves with the criteria for qualifying for early retirement, including age and service requirements. Additionally, understanding the benefits that are available should retirement occur before the standard retirement age can affect financial planning, as these benefits can differ significantly from those available at normal retirement age due to reduction factors or penalties.
Early Retirement Eligibility: L3Harris Technologies determines eligibility for early retirement based on age and years of service. Employees may qualify for early retirement if they are at least 55 years old and have completed 10 years of service(L3Harris Technologies I…). Opting for early retirement can result in a reduced pension benefit due to the longer payment period. These reductions, known as early retirement penalties, affect financial planning since the payout is lower compared to waiting until the normal retirement age(L3Harris Technologies I…).
In what ways do the pension formulas at L3Harris Technologies differ, and how can employees assess which plan is most advantageous for their retirement? Employees participating in the L3Harris pension plan can choose between different formulas, such as the Traditional Pension Plan and the Pension Equity Plan. Assessing which formula may yield higher benefits involves understanding the benefits calculation processes, including how each formula accounts for years of service, salary history, and participation criteria, which can significantly impact total retirement income.
Pension Formulas: L3Harris employees can choose between different pension formulas, such as the Traditional Pension Plan and Pension Equity Plan(L3Harris Technologies I…). The Traditional Plan is based on years of service and final average pay, while the Pension Equity Plan uses a lump-sum formula that accrues value over time. Understanding how each formula calculates benefits is essential for employees to determine which plan will provide higher retirement income, depending on their service years and salary history(L3Harris Technologies I…).
How should L3Harris Technologies employees prepare for the selection of a beneficiary, and what are the potential impacts on their pension benefits? Selecting a beneficiary is an important component of retirement planning. Employees at L3Harris Technologies must understand the implications that come with adding a spouse or other individuals as beneficiaries, including the effect on benefit amounts and how beneficiary selection can influence survivor payouts. Moreover, they should familiarize themselves with the requirements for updating beneficiary information and the legal implications of such designations.
Beneficiary Selection: Choosing a beneficiary is a crucial step for L3Harris employees. Adding a spouse or another individual as a beneficiary may reduce the employee's pension benefit but ensures that a portion of the pension continues after the employee's death(L3Harris Technologies I…). Employees should be aware of the survivor benefit provisions, spousal consent requirements, and the need to regularly update their beneficiary information(L3Harris Technologies I…).
What procedures must L3Harris Technologies employees follow to appeal a denied pension benefit claim, and what timelines should they be aware of? Employees should be well-informed about the steps involved in the appeals process for denied claims, including how and when to file an appeal and the importance of providing adequate documentation. Understanding the statutes of limitations related to claims and appeals can significantly influence the outcomes for employees seeking to reinstate or secure their benefits.
Appealing Denied Claims: L3Harris Technologies employees must follow a formal process to appeal denied pension benefit claims(L3Harris Technologies I…). The process includes submitting an appeal within a specific timeframe and providing supporting documentation. It is important to be familiar with the statute of limitations and administrative remedies to ensure the best chance of success when appealing a decision(L3Harris Technologies I…).
How does L3Harris Technologies handle survivor benefits, and what actions should employees take to ensure that their surviving spouses or partners have access to these benefits? Understanding the components of survivor benefits at L3Harris Technologies is crucial. Employees should learn about the eligibility of their spouses or partners following their death, the type of benefits due, and any actions required to secure these benefits. Familiarity with the plan’s rules surrounding survivor benefits and timelines for elections can also affect the financial security of beneficiaries.
Survivor Benefits: L3Harris offers survivor benefits to spouses or designated beneficiaries(L3Harris Technologies I…). Employees must ensure that their spouse or partner is properly designated to receive these benefits, which may involve selecting an annuity option that provides continued payments to the survivor. Understanding the timelines for making these elections and the rules governing survivor benefits is crucial for securing financial support for loved ones(L3Harris Technologies I…).
What resources are available for L3Harris Technologies employees for receiving personalized retirement counseling, and how can these resources aid in making informed financial decisions? Employees may benefit from accessing professional counseling services or informational resources provided by L3Harris Technologies. These resources can include individual retirement planning sessions that help employees align their pension benefits with their overall retirement strategy, ensuring that they utilize their benefits effectively and are informed about their options.
Retirement Counseling Resources: L3Harris provides personalized retirement counseling services to assist employees with their pension and retirement planning(L3Harris Technologies I…). These resources include individual sessions to discuss how pension benefits fit into overall retirement strategies. By leveraging these services, employees can make well-informed decisions about their financial future(L3Harris Technologies I…).
How can employees of L3Harris Technologies find out more about their eligibility for the Cash Balance Plan and the advantages of this plan over traditional pension formulas? Employees should research what defines an "active Cash Balance Plan Participant" as well as the benefit calculations associated with it. Investigating the elements that set this type of plan apart—specifically regarding lump-sum distributions and the ability to track benefits—can better inform employees about the potential advantages for their future retirement income.
Cash Balance Plan: Employees interested in the Cash Balance Plan can research its advantages over traditional pension formulas. The Cash Balance Plan allows for lump-sum distributions and provides clear benefit tracking, which can be more appealing to employees looking for flexibility and control over their retirement funds(L3Harris Technologies I…).
What impact do potential changes to the L3Harris Technologies pension plan have on current employees, and what steps should they take to stay informed about such changes? Employees should remain vigilant regarding any amendments to the pension plan that could influence their retirement benefits. This includes understanding their rights under ERISA and staying engaged with communication from L3Harris regarding plan updates, ensuring that they are equipped to make timely decisions based on the latest information.
Plan Changes: L3Harris employees should stay updated on any changes to the pension plan, which could impact their benefits(L3Harris Technologies I…). Monitoring communications from the company and understanding their rights under ERISA is essential to making timely decisions based on new plan terms or amendments(L3Harris Technologies I…).
How can employees of L3Harris Technologies contact the Benefits Service Center to address specific questions regarding their pension plan or retirement strategy? It is essential for employees seeking clarity on their pension benefits or retirement planning to know how to reach out to the L3Harris Benefits Service Center. This center acts as a vital resource, and understanding its operations—including contact times, methods of contact, and the types of inquiries that can be addressed—will enable employees to receive the guidance they need regarding their benefits.
Benefits Service Center: L3Harris employees can contact the Benefits Service Center for any questions regarding their pension or retirement strategy. The center provides assistance with understanding pension benefits, resolving issues, and addressing specific inquiries related to retirement planning(L3Harris Technologies I…)(L3Harris Technologies I…).
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