A news release said CCP has designed an insurance program with two components:
- a special disability insurance plan that continues partners’ contributions, up to $150,000 a year, when they become disabled so retirement assets grow just as if they had continued working. This component can be designed to pay benefits into the partners’ qualified plan accounts, into separate nonqualified trust accounts, or to the disabled partner to be invested.
- a long term care insurance plan that protects partners’ qualified plan assets and income against the high costs of extended health care. A portion, or all, of the premium can be tax deductible, with some states offering tax credits. The policies can include a premium refund feature that guarantees premiums won’t be wasted if long-term care is never needed.
In addition, both components can be offered to the firm’s staff and attorneys.
“It is not uncommon to see partners deferring in excess of $100,000 a year into these plans,” said Philip Davis, president of CCP,in the news release. “As a result it is critically important that they eliminate risks that can cause the loss of their contributions and their plan assets.”
CCP has identified the most serious of these risks facing partners’ nest eggs to be pre-retirement disability and the costs of extended health care, the news release said.
The company recently launched a similar plan for physicians (see “Plan Protects Retirement Savings of Disabled Physicians“) and one to protect nonqualifed deferred compensation plan benefits (see “New Program Designed to Protect NQDC Benefits“).