FRATERNAL ORDER OF POLICE

FOP Member Benefits Trust

The best way to save for medical expenses

Medical expenses and health insurance will probably be your largest monthly expense during retirement, outside of a mortgage. It is a big expense for those retiring, and the cost will only grow larger into the future. Proper financial planning includes saving dollars for retiree medical.

We offer a plan that provides the best way to save for retiree medical expenses by beating the IRS three ways. This isn’t available through any other type of program. Contributions to the plan are not taxed going in, earnings are not taxed, and the benefits are not taxed when paid.

Each participant has their own account containing contributions and earnings. Benefits from the account are available to the member, their spouse, and dependent children. This plan does not have a “use it or lose it” provision, your unused benefits roll into the future.

Everyone will have retiree medical expenses. Start accumulating benefits now to help pay for the cost of future medical expenses.

Plan Flexibility:

  • Group picks contribution amount or a percentage of set salary
  • Reimburse any allowable medical expense
  • Can be used for medical insurance premiums
  • Choose to use it now for medical expenses, save it for retirement, or both

This plan can also be used to:

  • Roll over leave cash-out dollars without being taxed
  • Reimburse any allowable medical expense
  • Accumulate negotiated HRA funding for use in conjunction with your current medical plans

Financial Survival

Income protection if you become disabled

Your ability to earn income is one of your greatest assets and can be protected in the event of a disability that causes you to lose your paycheck.

You need to be prepared.

  • Many families live paycheck to paycheck with no savings
  • Disability is the leading cause of bankruptcy
  • Workers Comp doesn’t always help. Two-thirds of disabling injuries occur off the job.
  • Between ages 35 and 65, one-third are disabled at least 3 months and 1 in 7 are disabled for more than 5 years.
  • Medical conditions that used to kill now only disable
  • Law Enforcement Officers face a higher risk of heart attack and stroke

Our plan provides income protection for accidents or illnesses, whether they occur on the job or off the job. It makes sense to insure your risk and your ability to earn a living.

  • Only 1 month of benefit is about the same as 4 years of premiums
  • Benefits can be paid as long as you are disabled -- up to age 65 and longer in some cases

About the need to protect your income stream

Odds of using auto insurance are 1 in 47

Odds of using home insurance are 1 in 88

Odds of suffering a serious disability between ages 35 and 65 are 1 in 3

If your benefit is $3,000 per month and you are disabled from age 30 to age 65, the benefit could total over $1,000,000 and the cost of protection is less than $2 per day.

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