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CaliBen

Retiree Life Insurance Settlement

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Our company has a VEBA for a legacy retiree life insurance plan and is considering a buyout/transfer of this liability to an insurer. This is beyond my area of expertise.

What potential pitfalls do we need to look out for? For example I have heard that retirees who retired due to disability may not be covered. If that is the case are there any solutions for them? Or do we have to maintain the VEBA for that small group?

Any other things to look out for?

Thanks in advance.

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