Retirement Accumulation Insurance (RAI) is a form of decreasing term life insurance designed to complement the benefits of your NADART plan and is offered for an additional cost. It benefits your employees by ensuring their beneficiaries receive a substantial retirement benefit if they die before age 70. Prudential is the underwriter for this program.

The amount the beneficiary would receive is calculated by a formula based on the amount of money that would have accumulated in the participant’s NADART account. Factored into the formula are:

• Age, in years and months, at the time of death.

• Adjusted monthly compensation.

• Level of Coverage (I,II, or III) selected by the plan sponsor.

• Minimum and maximum coverage amounts for each level.

For over a decade, dealers who offer retirement accumulation insurance (RAI) coverage have received premium refunds, which help reduce the cost of the program. Although not guaranteed, paid as annual dividends, the refunds have amounted to 35 percent of total premiums paid since 1990. It is important to note that premiums are based on up to $40,000 of annual compensation while benefits are based on up to $100,000 of annual compensation.

Levels of Coverage