Securing Your Clients Retirement Contributions

The Retirement Completion Plan allows financial advisors to help their clients secure the anticipated contributions to their clients’ retirement program. This will guarantee that the insured is able to accomplish his or her retirement planning even in the event of a permanent total disability. The plan’s benefits are calculated based upon the amount paid into the existing retirement program, averaged over the past 12 months, times the number of years until the insured is expected to retire. Upon a claim, the benefit is paid as a lump sum benefit after a 12 month elimination period. The insured is free to use this lump sum benefit in any way he or she sees fit. This plan is unlike disability retirement plans from traditional carriers whereby the benefit is held in a trust and cannot be used until the insured turns age 65.

The concerns for benefits paid into a trust and held for the insured to turn age 65 is not fair nor practical, for many seriously disabled people may not have a chance to ever see that money. Their heirs might, but early mortality is often experienced by disabled people. To allow the insured the freedom of choice as to how and when to use this money could literally be the difference between life and death. Saving the money for retirement or using it to seek out alternative medical treatment, assisted care, or to just have one grand old time with it becomes the responsibility of the insured and not the insurance carrier.

The Retirement Completion Plan can be sold individually, but it also works very well as a group program, with guaranteed issue available.