Think about this!  Let's say your company offers both a 401(k) and a Group Long-Term Disability (LTD) plan that pays you about 60% of your income until you reach age 65.  When you are disabled, you'll receive that 60% (no inflation protection) until age 65 at which time it stops.  

When you became disabled, your 401(k) contributions stopped because you had no income upon which to base the contribution.  You'll then find yourself up that proverbial creek with no paddle, no income, social security (maybe), a reduced 401(k), and no time to rebuild your retirement.

(no paddle)	(no income)	(maybe)	(reduced)	(no time)

It is a customized, personal disability income plan that is inexpensive and will be there for you to plug that disability hole in your retirement planning.  Here's how it works ...

The amount of the benefit, up to $60,000 per year, is based on your current retirement plan contribution PLUS any employer match (or contribution).  The benefits begin after 180 days of disability and will continue while you are disabled until you reach age 65.  

This is in addition to any other disability benefits you receive.  The benefits are paid into a trust administered by a major A+ rated insurance company so that you will preserve the tax-free status of both the benefits received and the growth of your trust assets. There are investments options within the trust to meet individual preferences.

When this retirement protection plan is paid by the employer, we have a guaranteed issue feature (at least 10 participants) which means everyone, regardless of health conditions, will be guaranteed coverage at standard rates.

When this is offered on a voluntary basis (employee pay), at least 20 participants will qualify everyone for the same standard rate guaranteed issue feature.

So ... your insurance broker says you've the option to add a pension protection feature to your Group LTD plan?  My answer ... There are at least three strong reasons why the group disability policy form is NOT the right solution.

If you want to know more about disability insurance, we can help.