The Disability Retirement Protection Rider found within a Disability Insurance Plan.
Only a couple of Insurance Carriers offer the optional Disability Retirement Protection Rider, and it does raise your premium to include this rider as part of your plan
With the Disability Retirement Protection Rider, in the event you become disabled, not only would you receive your regular monthly disability benefits, but an additional monthly benefit would also be placed into a retirement account for you. Technically, the retirement account would be a “retirement trust” that you could access beginning at age 65. Funds would only be placed into this retirement trust during a period of disability.
This is actually a great strategy for individuals looking to maximize their plan’s benefits. For example, if we design your plan with a benefit period to age 65, this means, if disabled, you would stop receiving your benefits at that time. But, if we also design your plan with a Disability Retirement Protection Rider, then you would have access to the additional benefits deposited into your “trust” beyond age 65.
The money in your “Retirement Trust”, just like any other normal retirement investment, would grow over time as interest accrues. For the Disability Retirement Protection Rider to be an available option for you, the only caveat is that insurance carriers require that you are already contributing to some sort of retirement savings plan at the time that you apply for a disability plan. If you are not currently contributing to a retirement account of any kind, this rider will not likely be a possibility.
Including this rider can help maximize the strength of your disability plan to give you the most comprehensive and robust coverage.