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Old 06-08-2015, 04:47 AM
 
168 posts, read 129,848 times
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I was lucky. My husband and I were given good advise when confronted with his terminal illness. Unfortunately none of this advice came from his HR at work. Unless you count the after hours off the books call advising us to check his retirement package. It seemed that if he died while actively employed i would lose 50% of his pension. It would have gone back to the company. But if we terminated his employment to save pension we would lose all our insurances. ..medical, life, and disbility. At our age it would have been disastrous. Here is what we did and I hope it helps someone. He was 62 and I was 59 at this time.

1. My husband went on short term disability. It is illegal to force you out of employment while on this insurance. You are still an active employee with all benefits. While on short term our take home income was actually higher because no deduction were taken except for medical and insurance. Once you are on short term if your illness lasts more than 6 months you then transfer to long term which lasts until you are eligible for social security. So you do not have to take early SS. Once you transition to long term you are no longer considered an active employee and must then be able to pay Cobra and all Iinsurance premiums yourself.

2. While on short with our doctor's help we were able to access 80% of the full value of the life insurance policies carried through work. If we had been forced into early retirement we would not have been Abe to afford the converted premiums and they would have lapsed. Anyone facing a terminal illness is able to do this. Most people do not realize you have this option and the insurance company will not tell you. I found out about this when interviewing financial advisors.

3. Once we had the money from insurances and we're on disability insurance my husband resigned from his job duu
e to health reasons. HE DID NOT RETIRE. By doing it this way we were able to stay on short term disability which would automatically go to long term after six months. If he had retired disability would have ended. Our payout from insurances took care of cobra and the premiums for the 20% life insurances that were converted to whole life. As well as paying off house and all debts. By resigning his job he was able to transfer a lump sum payout of his retirement to a third party IRA. So we were able to save his pension.

I hope this information helps others.
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Old 06-08-2015, 04:54 AM
 
168 posts, read 129,848 times
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Default why this impacts retirement

I put this in retirement forum because we were close to retirement and this impacted my quality of life after retirement. Also many people face this situation near the end of their work life.
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Old 06-08-2015, 05:20 AM
 
29,775 posts, read 34,860,277 times
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This is a very real and unfortunately repeated over and over situation in varying ways. Unfortunately the stress on the family between the illness of a loved one and confronting the workplace dynamics can be overwhelming. Best of everything moving forward.
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Old 06-08-2015, 05:20 AM
 
168 posts, read 129,848 times
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To do this required...
1. Coordinating his company HD and the Hartford disability HR.

2. Working with Hartford life insurance HR and our doctor.

3. Working with 2 different HR to set up leaving the company and transferring our pension and 400K plans to a third party.

The company had wanted my husband to take early retirement which would have been financially disasterous.
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Old 06-08-2015, 05:30 AM
 
29,775 posts, read 34,860,277 times
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In some pension plans if you die prior to actually retiring you lose your pension (spousal benefit) thus creating the choice of renting and in many cases losing health insurance if not provided in retirement or yet earned.
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Old 06-08-2015, 05:34 AM
 
Location: Maryland
1,534 posts, read 3,781,044 times
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The OP has posted some extraordinarily valuable information. KUDOS!
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Old 06-08-2015, 05:41 AM
 
29,775 posts, read 34,860,277 times
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Quote:
Originally Posted by Pilgrim21784 View Post
The OP has posted some extraordinarily valuable information. KUDOS!
Bada Bing!
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Old 06-08-2015, 06:52 AM
 
Location: Central Massachusetts
4,800 posts, read 4,845,678 times
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Quote:
Originally Posted by Suevee View Post
I put this in retirement forum because we were close to retirement and this impacted my quality of life after retirement. Also many people face this situation near the end of their work life.

Since no one else did yet, I will say thank you for this valuable information. I for one feel bad that you have had to go through that. I hope all turns out well. It is something many of us will be faced with eventually. Thanks again.
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Old 06-08-2015, 07:15 AM
 
168 posts, read 129,848 times
Reputation: 844
I couldn't find how to edit my original post


IMPORTANT......YOU MUST GET YOUR 80% INSURANCE HARDSHIP PAYMENT BEFORE YOU GO ON SHORT TERM DISABILITY

You do this with a letter from your doctor stating that statistically you illness is terminal within 6 months. THEN AFTER you receive your money you go on disability. If you go on disability first then the option of taking a partial insurance payment is NOT available because you are collecting disability insurance. You cannot collect both AR the same time. It took us 5 weeks to get insurance payment.
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Old 06-08-2015, 09:52 AM
 
Location: Northern panhandle WV
3,007 posts, read 2,169,984 times
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Not all companies work that same way, even those that do have short and long term disability. Nor do they all have pensions of course. But still useful info.
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