How can I use insurance to substitute for my pension's 65% death benefit?

Question

My company offers a traditional pension. One option, declared once and only once upon retirement, is that my spouse would receive 65% of the pension upon my death. This comes at a reduced payout while I am alive.

This has all of the elements of an insurance policy on my life.

My company is shakey financially so I am exploring the option to taking out an equivalent insurance policy (if there is one) outside my company plan as a way of diversifying. I would take larger payments from my company and spend the equivalent money (or its PV) to fund an insurance policy on my life. Unfortunately, I can't seem to find any insurance/financial instruments that are directly comparable to the way the pension works.

Note, the FPBC max is a fraction of my pension.

Thus my questions:

1)Are there insurance/financial instruments that are close to the way the 65% option works in my pension?

2) If so, do they have a similar cost/benefit?

PS: I can afford a large upfront payment.

Answer 1

It sounds like what you are looking for is an annuity.  Talk with a local Primerica rep.  They have an annuity that has a death benefit and guaranteed income for life.

Might be something for you to look into.

Answer 2

Sounds like you're looking for an annuity kinda thing.  So a search on annuities.  It's not directly comparable than a pension - for one thing, it will cost a lot more, but it will keep paying your spouse for the rest of her life.