Is disability insurance worth getting?
We have plenty of life insurance to cover our needs. But now our agent is suggesting that we purchase disability insurance for my husband in the event he becomes disabled and cannot work. I'm not sure it's worth the expense (at $250/month). What do you think?
Public Comments
- 250 a month sounds kink of steep. I believe I pay 100 every three month or so and that's not bad. It is probably for the best, especially if you don't have job skills that could equal his salary. Hopefully you never use it!
- 1)Depends on how comprehensive the policy is (i.e. does it have to be a "workplace" event, does it cover car accidents or would they put that onto the car insurance company, would they subtract any payments from the other driver "if they pay any monies to you" from your disability checks/benefits...etc) 2)Depends on how "high risk" his lifestyle is..... 3)Is your husband selfemployed??? Otherwise, most "corporate" employers offer disability and supplementary disability much cheaper than an "independent" agent can (group discounts, ya' know). Also, if he IS self employed...have him check with the local Chamber of Commerce...some chamber's have enrolled with an insurance provider who offers discounts to their chamber members. **If your husband ends up needing the insurance, and it covers the disability, then it could be "priceless". However, it is rare that anyone ends up drawing any benefits...therefore, my earlier statement referencing how much "risk" is in his personal/work lifestyle. ***Always get quotes from at least 3 companies...yourself. It's a hassle sometimes...but if he's only one company...you'll know if you are getting a good deal or not (Don't split hairs over $5-$10 a month or something like that if you have a good relationship with your rep...but the difference in rates could be more measureable.)
- How long could you make it without your paycheck? How would you meet your monthly obligations without your paycheck? Would it be worth 2%-3% of your income to make sure that what you have worked so hard to earn is protected? Your ability to earn a living is without a doubt your greatest asset. Every day we get up, go to work and do not realize that in our lifetime we will earn a fortune.
- Disability is critical to protect the income stream of the any income earner. Not just to protect the loss of income to the family, but also to cover the living and medical expenses of the disabled. However, you need to evaluate the policy. $250/month sounds like a lot, but it might be because you're getting a high coverage. Generally, you should insure about 2/3 of your current income. Because the benefit will not be taxable if you pay the premium using after-tax dollars. - Does the policy cover own occupation or any occupation? Get one policy that at least cover own occupation for the first several years of disability. - Does the policy pay up to age 65, or for a duration like 5 to 10 years? The longer the payment, the higher the premium. - Is there a social security income rider? The premium will be cheaper with this rider since the insurance will work in conjunction with the SSI not in addition. It's true that group policies are much cheaper than individual ones. However, those policies will cease when your husband leaves work or is laid off. It's still wise to own your own disability policy. But if the job is relative secure, you might opt for a smaller coverage on your individual disability policy which will bring the premium down. Also, if you pay the premium annually or quarterly, it's always cheaper than paying monthly.
