Retirement dreams depend on one’s ability to work and earn an income.
Are you protecting what your clients have worked so hard to achieve?
A traditional Disability Income Insurance policy and DI Retirement Security can work together to help client’s maintain their lifestyle before and during retirement.
How It Works
- If too sick or hurt to work, a Disability Income Insurance policy would begin paying monthly benefits (after the elimination period has been satisfied)
- At the same time, DI Retirement Security (DIRS) benefits would be invested into an irrevocable trust – helping to continue saving for retirement
- Then at age 65 or 67, the holder would begin receiving payments from the trust – and continue to be paid until the funds are depleted
How DI Retirement Security Works
Disability Insurance benefits are paid directly to an irrevocable trust. These benefits are income tax-free when premiums are paid with after-tax dollars. The trust company invests the benefits on a client’s behalf into one of six asset allocation models (based on their investment style and risk tolerance) until they reach the end of their benefit period.
At the end of the benefit period, trust assets are available for use. Investment earnings in the trust are taxable annually.
We want to help secure your clients’ retirement dreams. For more information on Disability Income Retirement Security, please contact your DI Sales & Marketing Manager today!