How much disability insurance to you have?

Peaceful_Warrior · 03-12-2007, 12:24 AM

Just curious for all us youngin's -- how much disability coverage do you carry, and is it through your company or a private institution?

I recently dropped all of the term life insurance I had through my company and bought it privately because I found it was not only less expensive, but if I ended up leaving my job I know I'll still have coverage. It was a no-brainer.

I'm now looking at doing the same for my disability insurance and was wondering what others have experienced along these lines...

obryanjf · 03-12-2007, 06:22 AM

I have 60% STD/LTD thru the Co, no out of pocket for me. I could purchase another 10% but do not.

job

FinanceDude · 03-12-2007, 10:16 AM

60% STD/LTD through company, they pay 75% of the cost. I have a supplemental policy that covers an additional amount above and beyond that.

MikeD · 03-12-2007, 05:49 PM

I am "out on disabilty" until I turn 65 for vascular dementia as a result of a lifetime of diabetes. I always made sure that all my jobs had disabilty as one of the bennies. W/o it we'd be living in a homeless shelter. I wish I'd paid for supplemental ins but I was never offered it at any job. It seemed like the dis ins at the job was always just the minimum. I figgered the private ins maket wouldn't offer it to me due to the diabetes just like I can't get life or health on my own, always had to rely on group ins.

My advice is: always get as much dis ins as you can afford - you never know what will happen.

Mike D.

Ed_The_Gypsy · 03-12-2007, 08:54 PM

Quote:

My advice is: always get as much dis ins as you can afford - you never know what will happen.

I agree. Buy some privately in case your next employer doesn't offer it.

Empty Pockets · 03-13-2007, 07:35 AM

I'm self employed and buy my own policy. It has a 6 month waiting period and pays $2,000 per mo. til 65. It could be a deductible business expense, but I do not deduct the premium - this way the proceeds are not taxable.

This $2,000, plus SS benefits would about match what I draw from my business each month for living expenses. This way I wouldn't need to draw from other investments for living expenses.

Meadbh · 03-13-2007, 11:58 AM

I pay for private disability insurance that would replace about 2/3 of my earnings and has COLA. It also kicks in if I can work, but not at my own occupation (physician). This is a good clause to get if you are in a highly paid occupation. Like Empty Pockets, I do not deduct payments so any benefits would be tax free. I consider decent disability insurance an essential purchase, whereas, having no dependents, I have no need for life insurance.

Bimmerbill · 03-13-2007, 04:27 PM

ANyone have any tips on how to go about shopping for it? Some quotes I saw were in the $200 per month range.

My old job used to have it. I have disability of a sort thru the federal system, but you have to be totally unable to do ANY work for it to kick in with 60% salary.

I wonder if that is enough?

Meadbh · 03-13-2007, 04:34 PM

Quote:

Originally Posted by Bimmerbill

ANyone have any tips on how to go about shopping for it? Some quotes I saw were in the $200 per month range.

Do you have a union or professional association? They will frequently have access to a group policy at affordable rates for bulk buyers. You can also check out insurance company websites or insurance brokers.

SingleMomDreamer · 03-13-2007, 05:43 PM

I have disability through work, which just increased the maximums on the policy (they lowered life insurance benefits to compensate). My employer also helps line up supplemental disability insurance through AFLAC. I inquired about this option years ago and AFLAC told me I was not eligible, due to a previous diagnosis of Crohn's disease. The old "Catch-22."

saluki9 · 03-14-2007, 03:05 PM

I carry 7K/month through the AICPA. They have a sweetheart deal for CPAs. I think it only costs be like $40 a month.

brewer12345 · 03-14-2007, 03:08 PM

Be careful who you buy this from. I would pretty much only buy it from MassMutual, Northwestern Mutual, or USAA.

saluki9 · 03-15-2007, 08:52 AM

Quote:

Originally Posted by brewer12345

Be careful who you buy this from. I would pretty much only buy it from MassMutual, Northwestern Mutual, or USAA.

Brewer, the AICPA program is through Pru, what do you think?

ziggy29 · 03-15-2007, 09:20 AM

My employer pays for LTD for 2/3 of my salary. We have an option to pay a few bucks per pay period to get it as an after-tax benefit but I haven't run the numbers to see if that's a good deal for my situation yet.

Of course, when they say 2/3 of my salary, that's inclusive of any government disability benefits such as SSI and other things. The insurance would only pay as much as it had to in order to get my total combined benefit to 2/3 of normal pay.

brewer12345 · 03-15-2007, 09:23 AM

Quote:

Originally Posted by saluki9

Brewer, the AICPA program is through Pru, what do you think?

Better than Unum, at least. Pru is probably Ok, just because they are so big. But they wouldn't be my frst choice.

FinanceDude · 03-15-2007, 10:16 AM

Quote:

Originally Posted by brewer12345

Better than Unum, at least. Pru is probably Ok, just because they are so big. But they wouldn't be my frst choice.

Agreed..........FWIW firms like NML and Mass Mutual carry higher policy reserves than Pru, so that is probably why you mention them...........

brewer12345 · 03-15-2007, 11:01 AM

Quote:

Originally Posted by FinanceDude

Agreed..........FWIW firms like NML and Mass Mutual carry higher policy reserves than Pru, so that is probably why you mention them...........

I mention them because they are vastly superior credits and have a history of generally paying legitimate claims without a fuss. Can't say either of those things about a lot of their competitors.

ziggy29 · 03-15-2007, 11:13 AM

Quote:

Originally Posted by brewer12345

I mention them because they are vastly superior credits and have a history of generally paying legitimate claims without a fuss. Can't say either of those things about a lot of their competitors.

This bears repeating. Cheap insurance that doesn't pay is neither cheap nor insurance.

saluki9 · 03-16-2007, 05:21 AM

Quote:

Originally Posted by brewer12345

Be careful who you buy this from. I would pretty much only buy it from MassMutual, Northwestern Mutual, or USAA.

Thinking about that post, I find it funny you didn't mention guardian?

brewer12345 · 03-16-2007, 06:43 AM

Quote:

Originally Posted by saluki9

Thinking about that post, I find it funny you didn't mention guardian?

Yup, you're right: forgot Guardian.

03-12-2007, 12:24 AM	#1
Peaceful_Warrior Full time employment: Posting here. Join Date: Dec 2006 Posts: 509	How much disability insurance to you have? Just curious for all us youngin's -- how much disability coverage do you carry, and is it through your company or a private institution? I recently dropped all of the term life insurance I had through my company and bought it privately because I found it was not only less expensive, but if I ended up leaving my job I know I'll still have coverage. It was a no-brainer. I'm now looking at doing the same for my disability insurance and was wondering what others have experienced along these lines... __________________ Awaken Your Spirit at Spiritual-Short-Stories.com!

03-12-2007, 06:22 AM	#2
obryanjf Recycles dryer sheets Join Date: May 2005 Posts: 135	Re: How much disability insurance to you have? I have 60% STD/LTD thru the Co, no out of pocket for me. I could purchase another 10% but do not. job

03-12-2007, 10:16 AM	#3
FinanceDude Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Aug 2006 Posts: 6,849	Re: How much disability insurance to you have? 60% STD/LTD through company, they pay 75% of the cost. I have a supplemental policy that covers an additional amount above and beyond that. __________________ Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)

03-12-2007, 05:49 PM	#4
MikeD Recycles dryer sheets Join Date: Apr 2003 Location: Leesburg, VA Posts: 492	Re: How much disability insurance to you have? I am "out on disabilty" until I turn 65 for vascular dementia as a result of a lifetime of diabetes. I always made sure that all my jobs had disabilty as one of the bennies. W/o it we'd be living in a homeless shelter. I wish I'd paid for supplemental ins but I was never offered it at any job. It seemed like the dis ins at the job was always just the minimum. I figgered the private ins maket wouldn't offer it to me due to the diabetes just like I can't get life or health on my own, always had to rely on group ins. My advice is: always get as much dis ins as you can afford - you never know what will happen. Mike D. __________________ I just want to celebrate another day of livin' I just want to celebrate another day of life - R. Earth

03-13-2007, 07:35 AM	#6
Empty Pockets Recycles dryer sheets Join Date: Dec 2006 Posts: 149	Re: How much disability insurance to you have? I'm self employed and buy my own policy. It has a 6 month waiting period and pays $2,000 per mo. til 65. It could be a deductible business expense, but I do not deduct the premium - this way the proceeds are not taxable. This $2,000, plus SS benefits would about match what I draw from my business each month for living expenses. This way I wouldn't need to draw from other investments for living expenses. __________________ "Watch your topknot"

03-13-2007, 11:58 AM	#7
Meadbh Thinks s/he gets paid by the post Join Date: Jul 2006 Posts: 1,477	Re: How much disability insurance to you have? I pay for private disability insurance that would replace about 2/3 of my earnings and has COLA. It also kicks in if I can work, but not at my own occupation (physician). This is a good clause to get if you are in a highly paid occupation. Like Empty Pockets, I do not deduct payments so any benefits would be tax free. I consider decent disability insurance an essential purchase, whereas, having no dependents, I have no need for life insurance.

03-13-2007, 04:27 PM	#8
Bimmerbill Recycles dryer sheets Join Date: Jan 2006 Posts: 484	Re: How much disability insurance to you have? ANyone have any tips on how to go about shopping for it? Some quotes I saw were in the $200 per month range. My old job used to have it. I have disability of a sort thru the federal system, but you have to be totally unable to do ANY work for it to kick in with 60% salary. I wonder if that is enough?

03-13-2007, 05:43 PM	#10
SingleMomDreamer Dryer sheet aficionado Join Date: Jan 2007 Posts: 45	Re: How much disability insurance to you have? I have disability through work, which just increased the maximums on the policy (they lowered life insurance benefits to compensate). My employer also helps line up supplemental disability insurance through AFLAC. I inquired about this option years ago and AFLAC told me I was not eligible, due to a previous diagnosis of Crohn's disease. The old "Catch-22." __________________ No time for day dreamin.'

03-14-2007, 03:05 PM	#11
saluki9 Thinks s/he gets paid by the post Join Date: Feb 2005 Posts: 1,717	Re: How much disability insurance to you have? I carry 7K/month through the AICPA. They have a sweetheart deal for CPAs. I think it only costs be like $40 a month.

03-14-2007, 03:08 PM	#12
brewer12345 Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Mar 2003 Posts: 9,157	Re: How much disability insurance to you have? Be careful who you buy this from. I would pretty much only buy it from MassMutual, Northwestern Mutual, or USAA. __________________ "When caught between two evils I generally pick the one I haven't tried before." - Mae West "If dogs weren't meant to eat dental floss out of the garbage, why do they make it mint-flavored?"

03-15-2007, 09:20 AM	#14
ziggy29 Thinks s/he gets paid by the post Join Date: Oct 2005 Location: Texas Hill Country Posts: 2,125	Re: How much disability insurance to you have? My employer pays for LTD for 2/3 of my salary. We have an option to pay a few bucks per pay period to get it as an after-tax benefit but I haven't run the numbers to see if that's a good deal for my situation yet. Of course, when they say 2/3 of my salary, that's inclusive of any government disability benefits such as SSI and other things. The insurance would only pay as much as it had to in order to get my total combined benefit to 2/3 of normal pay. __________________ FIRE Clock: Looks more like Mr. Peabody's Way Back Machine now. I didn't want to retire anyway. waiting for the government to privatize the gains and socialize my losses in my 401K...