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Disability Insurance/LTC
Old 12-31-2005, 06:34 AM   #1
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Disability Insurance/LTC

As some of you know "quality" disablity insurance , purchased on your own is getting harder to come by.
For those recently ER'd who were self-employed and had their own disability policy do you continue to carry it for a while, "just in case" you go back to work, or do you let it expire and hope for the best.
I'd be interested in your rationale. I currently pay $2,200/yr for a $6,500/month 90 day elimination period, non-cancellable, guaranteed renewable policy(s),split evenly between UNUM and Equitable Life. I've had the policies for over 15 years.

Also, does anyone carry and pay for their own LTC(long term care) insurance while ER'd.
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Re: Disability Insurance/LTC
Old 12-31-2005, 07:00 AM   #2
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Re: Disability Insurance/LTC

Quote:
Originally Posted by ferco
As some of you know "quality" disability insurance , purchased on your own is getting harder to come by.
For those recently ER'd who were self-employed and had their own disability policy do you continue to carry it for a while, "just in case" you go back to work, or do you let it expire and hope for the best.
I'd be interested in your rationale. I currently pay $2,200/yr for a $6,500/month 90 day elimination period, non-cancellable, guaranteed renewable policy(s),split evenly between UNUM and Equitable Life. I've had the policies for over 15 years.

Also, does anyone carry and pay for their own LTC(long term care) insurance while ER'd.
ferco, I deleted your first post as it was a duplicate except for the subject.

I did not continue my disability insurance after I retired. If you are FI and have health coverage, do you really need disability coverage? I don't think so, but am interested to hear what others are doing and why.

DW and I do have LTC insurance. We purchased the policies 7 years ago with a 10 year guarantee of no premium increase. Depending on what the hit is on the premiums after the guarantee period ends, we may drop a policy on one of us and just keep one. (Maybe we will flip a coin to see who stays and who goes ).

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Re: Disability Insurance/LTC
Old 12-31-2005, 08:05 AM   #3
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Re: Disability Insurance/LTC

I have a disabilty policy through work that I can continue when I leave. I have no plans to do so.

Don't have a LTC policy. There are some guys at work who are buying LTC policies with pretax dollars. When they were shopping I decided we were too young at that time to buy a policy and our families don't have histories of going into nursing homes.

Jury is still out for me on LTC insurance.
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Re: Disability Insurance/LTC
Old 12-31-2005, 08:19 AM   #4
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Re: Disability Insurance/LTC

Assuming you are FI or nearly so, I'd dump the DI policies (especially the one from Unum - you're especially lucky you never made a claim on that one).

LTC looks like a gamble to me. The companies writing this product are making an educated guess as to the underwriting and eventual payouts, so they included language that allows them to jack up premiums if they guessed wrong. Some policyholders have been hit with 50+% increases, which can do a lot of damage to your SWR.
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Re: Disability Insurance/LTC
Old 12-31-2005, 08:57 AM   #5
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Re: Disability Insurance/LTC

My mother was hit by an uninsured motorist and her policy kicked in - what a big help. She was in bed at home for over a year. My father has a policy which he thought was never to increase - wrong. They went to the state for an increase. He might start using some it shortly for some help at home. I believe he pays around
$5000 per year since about 1998. It was around $4500 before. Coverage $150 per day no cap on time. Premium waived if he goes in over a year. Don't think they will write these today.

I do not have a policy but am thinking of canceling my disablity policy. $2400 per year one year wait, 5 year max payout @$2500 per month. I have spleep apena and they run the other way.
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Re: Disability Insurance/LTC
Old 12-31-2005, 03:58 PM   #6
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Re: Disability Insurance/LTC

I've been paying for a DP for 20 years and luckly never used it but it is expensive. I plan on ER next year and also wonder what to do about this policy. I guess it's time to let it go and thank God I never had to use it.

Mine is payable till 62 but as I get closer to that age the policy would have to pay less. I have a 180 exclusion.

I'm also wondering what to do about LTC ins. With all the money I've sent to insurance companies over the years I think I'll roll the dice on the LTC. DW loves taking care of me anyway.
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Re: Disability Insurance/LTC
Old 12-31-2005, 08:41 PM   #7
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Re: Disability Insurance/LTC

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Originally Posted by 73ss454
DW loves taking care of me anyway.
Get LTC for her. Odds are you won't be around to help her when she needs it.
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Re: Disability Insurance/LTC
Old 12-31-2005, 11:12 PM   #8
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Re: Disability Insurance/LTC

Yea, good idea.

Us guys do get to kick the bucket earlier. It's the least I can do.
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Re: Disability Insurance/LTC
Old 01-01-2006, 12:29 AM   #9
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Re: Disability Insurance/LTC

Quote:
Originally Posted by 73ss454
It's the least I can do.
Which? Get her a LTC policy, kick the bucket or both?

MJ
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Re: Disability Insurance/LTC
Old 01-01-2006, 05:45 AM   #10
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Re: Disability Insurance/LTC

We carry neither, nor will we. Can't afford it, so no decision to be made.

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Re: Disability Insurance/LTC
Old 01-01-2006, 08:11 AM   #11
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Re: Disability Insurance/LTC

Quote:
Originally Posted by 73ss454
Us guys do get to kick the bucket earlier.
Whats that old quip? Why do men die before their wives? Because we want to!
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