1. BROOKFIELD
INSURANCE PARNTERS
“The Trusted Partner to Insurance and Financial Professionals”
Welfare Benefit Plans:
How to Keep Post Retirement Medical Costs from Depleting your Retirement
The Welfare Benefit Plan is a tax-advantaged plan providing Post-Retirement Health Care and Life Benefits. As a
business owner, you probably have given some thought to your retirement income. You have saved money in company
retirement plans, and other assets, and you may have an idea of what you will need in order to have a comfortable
retirement.
What would happen though if your retirement lifestyle if sudden medical expenses were to occur?
The amount needed to pay postretirement health care expenses can be significant. Medical costs are escalating with such
items as prescription medications, expansive new technology, and inflation contributing to significant and relentless
increases.
The Solution:
One solution is to set aside funds using tax-deductible business contributions to provide postretirement health care and life
insurance benefits under the terms of a single employer welfare benefit plan. A single employer welfare benefit plan is a
generic name used to describe any one of the several plans established by a single business to provide miscellaneous
welfare benefits to its employees and their dependents.
Permissible Benefits:
A wide variety of benefits may be provided under a single employer welfare benefit plan including:
• Medical and hospitalization expenses including insurance premiums, co-pays, deductibles, and noninsured
medical expenses
• Prescription and over-the-counter drugs
• Long-Term Care, Home Health Care, and Nursing Home Expenses
• Death Benefits, including individual and survivorship
Contribution Limits and Flexibility:
There are no minimum contribution requirements. Consequently, an employer can skip a contribution in one year and
make significant contributions during peak profit years.
For Questions on the Technical and Practical Aspects of this Concept, please contact:
Bradford J. Kadelski
President/Managing Partner
Brookfield Insurance Partners
www.brookfieldpartners.com
(866) 639-0443