How much disability insurance to you have?

[Peaceful_Warrior]

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]

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

job

 

[FinanceDude]

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]

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]

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]

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]

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]

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]

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]

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]

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]

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

 

[saluki9]

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]

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]

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]

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]

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]

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]

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]

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

Yup, you're right: forgot Guardian.

 

[mophead]

What's so bad about Unum? That's who my private insurance is through. It's an own-occupation policy that was offered to us through work without the need for medical clearance, and I pay $140 a month for $36000/year coverage (nontaxable) which can be increased as my income rises. Of course, I doubt I'd be able to buy a private policy on my own due to a pre-existing condition, so it's either that or nuthin'.

 

[chinaco]

Through work... 60% of salary.


Should only need it for another 4.5 years till I FIRE... That is unless something happens between now an then. If I did go on DB for some unfortunate reason... (and I hope/pray I do not) then I would need it until normal retirement

 

[jdmorton]

I've opted for additional coverage, through w*rk. The standard coverage is 60% of your salary short-term (up to 26 weeks) and 50% long-term (anything after short-term). I have 100% short-term and 80% long-term. As I get older, I figure I'll be needing them.

 

[brewer12345]

What's so bad about Unum?

You mean aside from the:

- thousands of people suing them for rejected legit claims?
- Multi-state regulatory settlement that forced them to re-examine many thousands of claims?
- Several lawsuits from state attorneys general alleging bid-rigging in group insurance?
- Gawd knows how many millions of dollars they have paid in penalties and settlements?
- Iffy credit rating?

But if that is all you can get, it is what it is, I guess.