Month: January 2024

Membership Benefits and Insurance Coverage

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PDA Insurance

PDA provides a comprehensive life and disability insurance package along with generous medical and dental coverage. These benefits are provided as a part of your membership.

Quicker turnaround time on damage estimates cuts insurer costs, improves shop profits and customer satisfaction. These improvements are credited to the new PDA system.

Life Insurance

The Insurance that PDA arranges for members is a very important element of the membership package. It provides substantial financial capability for the Association to provide comprehensive legal defence services and, in addition, to settle compensation claims against members up to £10 million per member (when this limit has been selected by a member), per incident.

The insurance is arranged on behalf of the members by The Pharmacy Insurance Agency Ltd who are regulated by the Financial Conduct Authority and act as an intermediary with underwriters at Lloyd’s. The PDA is a not-for-profit organisation and all profit is reinvestled in the membership package and the associated support for our members.

The insurance is funded by the PDA’s Premium Deposit Account (PDA) with a minimum interest rate of 4%, which is credited to the policy when funds are taken from the PDA to pay the premium. This enables the insurance to avoid becoming a Modified Endowment Contract and to benefit from tax-favored access to cash value, while still providing a guaranteed death benefit.

Disability Insurance

Often offered as a workplace benefit or purchased individually, disability insurance replaces a portion of your income if you become disabled due to illness or injury. While many policies cover only a short period of time, others are designed to last throughout your lifetime, enabling you to continue working despite severe and even permanent disabilities.

Typically, the benefits you receive from a disability policy are paid tax-free if premiums were paid with before-tax dollars. The definition of disability varies from carrier to carrier, however, and it is important to understand the differences. For example, some policies have a true Own-Occupation definition that only pays if you are totally disabled, while other policies define it as being unable to perform any occupation for which you are reasonably suited by education, training or experience.

Individual policies can also include riders such as student loan protection, which helps you pay off your debt if you are unable to work for a certain amount of time. Many policies also offer non-cancelable and guaranteed renewable coverage, which prevents the insurer from increasing your premium or reducing your benefits.

Long Term Care Insurance

Long term care insurance reimburses you for services that help you with daily tasks like bathing and eating. It can cover home health aides, adult day care and nursing-home care. It can also include a cash benefit that will pay you up to your selected limit if you are unable to perform these tasks due to an ongoing chronic illness or disability.

It is important to consider your needs and whether this type of policy is right for you. The cost of long term care can quickly deplete a person’s savings. Some policies offer tax advantages.

PDA members have access to comprehensive long term care insurance via a group policy that is placed with reputable insurers at Lloyd’s and is administered by the Pharmacy Insurance Agency Ltd who are authorised and regulated by the Financial Conduct Authority. PDA’s group long term care insurance does not require medical underwriting. PDA does not profit from the sale of long term care insurance.

Retirement Plan

Offering a retirement plan is an important tool for employers to help attract and retain employees. These plans are designed to provide tax incentives for employers and employees. Typical employer-sponsored retirement plans include 401(k) plans, SIMPLE IRA plans, Simplified Employee Pension (SEP) plans, profit sharing plans, and employee stock ownership plans. Employees can benefit from a 401(k) plan because contributions to the account are made on a pretax basis and earnings grow on a tax-deferred basis until withdrawn in retirement. Profit-sharing and ESOP plans are unique because they allow for employer contributions based on company profitability, which can help keep employees focused on building the company’s success.

PDA is committed to helping our members navigate the retirement planning process, including 401(k) plans and related issues.

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