We all know the dire
consequences that a long or even short term disability can bring. There would no doubt be increased medical
costs, mortgage payments must be met, not to mention the basic cost of putting
nourishing food on the table. Imagine if
a disability did strike and you’re out of work and could not make payments to
your IRA and/or 401k plan. Your retirement
dreams could be a thing of the past.
However, there is a new
investment that is attracting much attention.
It is often referred to by many companies as ‘RetireGuard.’ In this plan, a few well-known companies will
fund your retirement contributions to keep your retirement dreams intact. This would be achieved in exchange for premium
payments.
Some companies limit the
amount of contributions they will cover.
On the other hand, there are some companies will allow you to fund the
maximum amount the IRS allows for various plans such as traditional and Roth
IRAS. Obviously the bigger the
contributions, the higher the premiums.
Like other income protection plans there is a waiting period before
usually up to a full year. There is an
age limit, usually Age 60, beyond which the company will not insure this
benefit. Keep in mind that there are also strict underwriting requirements.
This is a fairly new and
innovative concept. While it is not meant for everyone, it may apply to some individual
families and businesses. Here is a
fascinating concept. Imagine giving a bonus
to Key People in your business to cover the cost of this type of disability protection. This
would go a long way in keeping key
employees in your business and in the long run add future growth through employee satisfaction.