There is nothing more damning to a financial plan than the 3 D’s: Death, Divorce and of course Disability. This is why insurance was invited, to protect you from two of these. Specifically in the disability insurance world, plans were originally designed to take care of your immediate needs such as mortgage payments and monthly expense usually up to your 65th birthday. However, this poses a perplexing question; When totally disabled how will you fund your retirement account so that you can survive after age 65? The unfortunate truth is that contributions to these plans typically cease when you stop working, ie when you become totally disabled. Recognizing this problem and the need for an immediate solution, many of the top disability insurance carriers went to the drawing board in order to develop a solution. The final products are called by many names but essentially make retirement contributions in addition to your total disability payment when totally disabled.
These riders or stand alone policy’s are designed to help replace up to 100% of retirement plan contributions that would have been made to your eligible retirement program. Its important to note these riders are not retirement plans, nor substitutes for them. They are simply another insurance policy/rider designed to pay benefits to an account for your future retirement. For more information this or other similar policies, I suggest you contact one of our Specialists for a complementary consultation.
By: Kyle Musleh
VP of Operations
