Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Cancel LT Private Disability Policy?
Old 10-04-2018, 02:38 PM   #1
Recycles dryer sheets
 
Join Date: Jan 2016
Posts: 385
Cancel LT Private Disability Policy?

So- as I have resigned from my job-not planned- was forced out- I am looking to cut expenses. Not sure if I will ever work again. I certainly don't want to, but who knows if I will have to at some point? Not planning on it, though. If anything- maybe part-time- but I even doubt that. My husband is still working full time thankfully.



Anyway- I have had a private disability policy for many years that ends at age 65. I am age 62. This policy has a 90 day waiting period. It also will only pay out for 2 years from the start of the payments supposedly.


But- since I am not working I am thinking I should just cancel it because if something happened to me it would not be a loss of income event payable under the policy.



If I keep it, I will be paying premiums for 3 more years just in case I get another job. (even then, I think the most the monthly payout is is $1000 per month and it could be less than that depending) I am thinking it is just not worth it. It is a little over $400 per year.


Opinions?
__________________

meleana is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-04-2018, 03:27 PM   #2
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 20,102
Quote:
Originally Posted by meleana View Post
But- since I am not working I am thinking I should just cancel it because if something happened to me it would not be a loss of income event payable under the policy.
Well, $400/year isn't a budget-buster but the reason for the policy is to replace or at least offset loss of income if you did become disabled. But since there now would be no loss of income it seems pointless to keep the policy. Would it even pay out anything since you don't have a job now?

Given the low premium I'd say it's a coin toss to keep or cancel.
__________________

__________________
I heard the call to do nothing. So I answered it.
Walt34 is online now   Reply With Quote
Old 10-04-2018, 03:28 PM   #3
Thinks s/he gets paid by the post
Fedup's Avatar
 
Join Date: Mar 2014
Location: Southern Cal
Posts: 4,032
I would toss it, if you’re disable, you can get SS.
Fedup is offline   Reply With Quote
Old 10-04-2018, 03:32 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Jun 2016
Posts: 3,066
I dropped my private disability as well. At one time it made sense, but no longer.
COcheesehead is offline   Reply With Quote
Old 10-04-2018, 03:39 PM   #5
Dryer sheet aficionado
 
Join Date: May 2013
Posts: 40
Have you checked the policy or with the agent to make sure it pays nothing if you are not working? What if you were “looking for a new job”? Just curious as I will probably in the same boat in a couple of years.
NH Hiker is offline   Reply With Quote
Old 10-04-2018, 03:46 PM   #6
Recycles dryer sheets
 
Join Date: Jan 2016
Posts: 385
Quote:
Originally Posted by NH Hiker View Post
Have you checked the policy or with the agent to make sure it pays nothing if you are not working? What if you were “looking for a new job”? Just curious as I will probably in the same boat in a couple of years.



I guess I should call and ask. I know with SS disability sometimes you can get it if you are looking for work. But I am not sure about private policies. I looked through mine and didn't see anything regarding that.
meleana is offline   Reply With Quote
Old 10-04-2018, 03:55 PM   #7
Recycles dryer sheets
 
Join Date: Jan 2016
Posts: 385
Quote:
Originally Posted by Walt34 View Post
Well, $400/year isn't a budget-buster but the reason for the policy is to replace or at least offset loss of income if you did become disabled. But since there now would be no loss of income it seems pointless to keep the policy. Would it even pay out anything since you don't have a job now?

Given the low premium I'd say it's a coin toss to keep or cancel.

Actually we are on a tight budget right now and i am looking for things to cut that add up over the course of the year. Hubby refuses to give up DirecTV- even though he barely watches it- just news. I am also looking at giving up one of our 3 cars to save on insurance and it would give us a few thousand dollars in the sale. I wanted to give up the landline- but our security system depends on it. His disability and life insurance policies expire next spring when he turns 65-( but he will hopefully still be working until at least age 66.) Elimination of those premiums will also help a lot.


Got the trash pick up bill reduced- saving $150 per year. And there are a few other little things I could probably cut out here and there as they come up. I probably should shop our car insurance and umbrella policy as well. Homeowners is harder because some companies won't insure our house because the main fire dept is a few miles further than they would like. We were dropped by Allstate after like 30 years of being with them- no claims or anything! Sigh....


One thing- my life insurance policy doesn't expire until I am 67 and I am thinking of keeping that. Another thing to consider. Even though no one depends on me for income right now, should I expire before then it would be nice for my beneficiary- my financially struggling son- to receive the proceeds.
meleana is offline   Reply With Quote
Old 10-04-2018, 05:31 PM   #8
Recycles dryer sheets
 
Join Date: May 2008
Location: Treasure Coast
Posts: 472
Quote:
Originally Posted by meleana View Post
Actually we are on a tight budget right now and i am looking for things to cut that add up over the course of the year. Hubby refuses to give up DirecTV- even though he barely watches it- just news. I am also looking at giving up one of our 3 cars to save on insurance and it would give us a few thousand dollars in the sale. I wanted to give up the landline- but our security system depends on it. His disability and life insurance policies expire next spring when he turns 65-( but he will hopefully still be working until at least age 66.) Elimination of those premiums will also help a lot.


Got the trash pick up bill reduced- saving $150 per year. And there are a few other little things I could probably cut out here and there as they come up. I probably should shop our car insurance and umbrella policy as well. Homeowners is harder because some companies won't insure our house because the main fire dept is a few miles further than they would like. We were dropped by Allstate after like 30 years of being with them- no claims or anything! Sigh....


One thing- my life insurance policy doesn't expire until I am 67 and I am thinking of keeping that. Another thing to consider. Even though no one depends on me for income right now, should I expire before then it would be nice for my beneficiary- my financially struggling son- to receive the proceeds.
Then I would definitely cancel it. Also shop the insurance if you haven't in awhile. You might be able to drop some of your auto coverages and save some money. Check with your security system company to see what cellular would cost instead of a landline, you might be able to get rid of the line and still pay the same for monitoring. I would probably also drop the life insurance depending on what it costs.
45th Birthday is offline   Reply With Quote
Old 10-04-2018, 05:36 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 4,598
Quote:
Originally Posted by COcheesehead View Post
I dropped my private disability as well. At one time it made sense, but no longer.
+1 - when I actually retired.
__________________
TGIM
Dtail is offline   Reply With Quote
Old 10-04-2018, 05:47 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 23,456
Quote:
Originally Posted by meleana View Post
Actually we are on a tight budget right now and i am looking for things to cut that add up over the course of the year. Hubby refuses to give up DirecTV- even though he barely watches it- just news.....
There may be other ways to save ... we have Dish but I suspect the principles are the same. Dish offers a skinny programming package called Welcome Pack... $25/month for programming... we have no OTA coverage where we live so we use that to get our locals.

Also, if you have TVs that are rarely used you can take them off and avoid the monthly equipment charge... especially if you can get OTA tv with a simple digital antenna.

Or you might switch to Dish and get their promotional credits for a year.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is offline   Reply With Quote
Old 10-04-2018, 06:10 PM   #11
Recycles dryer sheets
 
Join Date: Jan 2016
Posts: 385
Quote:
Originally Posted by pb4uski View Post
There may be other ways to save ... we have Dish but I suspect the principles are the same. Dish offers a skinny programming package called Welcome Pack... $25/month for programming... we have no OTA coverage where we live so we use that to get our locals.

Also, if you have TVs that are rarely used you can take them off and avoid the monthly equipment charge... especially if you can get OTA tv with a simple digital antenna.

Or you might switch to Dish and get their promotional credits for a year.



We just have the one TV, so good there. Not sure if hubby would want DISH. Our package right now- which is a grandfathered in very basic one- is up to $55 per month. His big thing is he has to have FOX News and the local NYC networks. He likes ME TV also. I will check into the channels on that DISH promotional package. I know our landline and DSL provider have a bundle with DISH- but it ends up being the same price as we pay now for the three things.
meleana is offline   Reply With Quote
Old 10-04-2018, 06:37 PM   #12
Full time employment: Posting here.
Oz investor's Avatar
 
Join Date: Jun 2018
Location: Brisbane
Posts: 780
Quote:
Originally Posted by meleana View Post
So- as I have resigned from my job-not planned- was forced out- I am looking to cut expenses. Not sure if I will ever work again. I certainly don't want to, but who knows if I will have to at some point? Not planning on it, though. If anything- maybe part-time- but I even doubt that. My husband is still working full time thankfully.



Anyway- I have had a private disability policy for many years that ends at age 65. I am age 62. This policy has a 90 day waiting period. It also will only pay out for 2 years from the start of the payments supposedly.


But- since I am not working I am thinking I should just cancel it because if something happened to me it would not be a loss of income event payable under the policy.



If I keep it, I will be paying premiums for 3 more years just in case I get another job. (even then, I think the most the monthly payout is is $1000 per month and it could be less than that depending) I am thinking it is just not worth it. It is a little over $400 per year.


Opinions?
perhaps get a thorough health check first , then consider if you will start accepting other work in the next three years.

don't cancel it until you are sure it will not benefit you any longer .
__________________
i hold the Australian listed versions of AU ( Anglo Ashanti ) , BHP , and JHG .

You must learn from the mistakes of others. You can't possibly live long enough to make them all yourself.

Samuel Levenson
Oz investor is offline   Reply With Quote
Old 10-04-2018, 06:40 PM   #13
Moderator Emeritus
aja8888's Avatar
 
Join Date: Apr 2011
Location: The Woodlands, TX
Posts: 10,490
Quote:
Originally Posted by Fedup View Post
I would toss it, if you’re disable, you can get SS.
Not as easy as you make it sound these days. We have a friend who is truly disabled and the third attempt required a lawyer to fight his case. It's been two years since the application process started and still no approval.
__________________
I'm out of signature material at this time.....
aja8888 is offline   Reply With Quote
Old 10-04-2018, 06:45 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 23,456
I can tell you for sure that Fox News is not included in Dish's Welcome Pack.

You could probably stream to that one TV with Hulu Plus for $40/month and get your locals and Fox News.

Check out https://www.suppose.tv
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is offline   Reply With Quote
Old 10-04-2018, 07:00 PM   #15
Full time employment: Posting here.
Oz investor's Avatar
 
Join Date: Jun 2018
Location: Brisbane
Posts: 780
Quote:
Originally Posted by aja8888 View Post
Not as easy as you make it sound these days. We have a friend who is truly disabled and the third attempt required a lawyer to fight his case. It's been two years since the application process started and still no approval.
indeed , which is why i had my socks shocked off when ( our version of ) SS gave me a disability pension 6 days after an appraisal for sickness benefits .

unusually quick for me ( normally like treacle in winter time )
__________________
i hold the Australian listed versions of AU ( Anglo Ashanti ) , BHP , and JHG .

You must learn from the mistakes of others. You can't possibly live long enough to make them all yourself.

Samuel Levenson
Oz investor is offline   Reply With Quote
Old 10-04-2018, 10:29 PM   #16
Thinks s/he gets paid by the post
Fedup's Avatar
 
Join Date: Mar 2014
Location: Southern Cal
Posts: 4,032
Quote:
Originally Posted by aja8888 View Post
Not as easy as you make it sound these days. We have a friend who is truly disabled and the third attempt required a lawyer to fight his case. It's been two years since the application process started and still no approval.
OP is 62,if she can’t get disability, she can get regular SS.
Fedup is offline   Reply With Quote
Old 10-05-2018, 03:05 PM   #17
Recycles dryer sheets
 
Join Date: Jan 2016
Posts: 385
Well, I called the insurance company today and the rep. told me that I do not have to be employed to receive benefits from this policy. She said as long as the disability prevents me from working, it would take effect. I would get $1000 per month as long as I could not work a job, even though I did not have a job when I became disabled.



When I turn 65, then I would have the option to continue the policy (of course at a higher premium) but I would have to be employed.



Of course, I would not renew it then anyway.


So now it is looking like I probably should keep the policy to age 65 anyway just in case.
meleana is offline   Reply With Quote
Old 10-05-2018, 03:09 PM   #18
Recycles dryer sheets
 
Join Date: Jan 2016
Posts: 385
Quote:
Originally Posted by pb4uski View Post
I can tell you for sure that Fox News is not included in Dish's Welcome Pack.

You could probably stream to that one TV with Hulu Plus for $40/month and get your locals and Fox News.

Check out https://www.suppose.tv



Thanks. I will check that out, but then probably not worth it as we are paying $55 per month now anyway. I have to keep working on him. LOL!



I say we could do fine with Roku and Amazon Prime Shows(which we pay $129 for the year- big Amazon users), and I subscribe to 2 internet only talk/news networks now already at $10 per month each anyway. I don't see why that would not be good enough. SMH...
meleana is offline   Reply With Quote
Old 10-05-2018, 03:10 PM   #19
Recycles dryer sheets
 
Join Date: Jan 2016
Posts: 385
Quote:
Originally Posted by Oz investor View Post
perhaps get a thorough health check first , then consider if you will start accepting other work in the next three years.

don't cancel it until you are sure it will not benefit you any longer .
\


Thanks. I get a physical every year and so far so good.
meleana is offline   Reply With Quote
Old 10-05-2018, 03:32 PM   #20
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 4,598
Quote:
Originally Posted by meleana View Post
Thanks. I will check that out, but then probably not worth it as we are paying $55 per month now anyway. I have to keep working on him. LOL!



I say we could do fine with Roku and Amazon Prime Shows(which we pay $129 for the year- big Amazon users), and I subscribe to 2 internet only talk/news networks now already at $10 per month each anyway. I don't see why that would not be good enough. SMH...
Fox news also is not in the Sling package, at least by me.
__________________

__________________
TGIM
Dtail is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
When to Cancel Disability Insurance / Life too... Months.in.Wyoming FIRE and Money 9 01-12-2018 05:43 AM
Should I cancel my term life policy? dvalley FIRE and Money 31 07-16-2016 04:03 PM
Financial Advisor's Privacy Policy- How Private is Private? cashflo2u2 FIRE and Money 7 09-25-2009 10:11 AM
Short term disability - group or private? Peaceful_Warrior FIRE and Money 4 11-21-2007 11:42 PM
When to cancel a LTD policy BigBob Health and Early Retirement 17 05-21-2007 01:56 PM

» Quick Links

 
All times are GMT -6. The time now is 05:49 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
×