approx how much will I fork out for disability insurance?

Which is better Life insurance or disability insurance?

Public Comments

1. Life insurance is for people you leave behind. If you have no kids, don't get it. Disability insurance costs depend on a number of factors, including your age and state of health.
2. They're two completely separate things. If you were injured and couldn't work for three months, could you pay your bills? And if it went on for two years or more? That's what disability insurance is for. Most people think that you'd just get Social Security disability if something happened, but that's not as easy as people think. It typically takes two years to get approved, if you ever do. And how much it costs depends on how much income you need to replace (the maximum it will typically replace is 60% based on the income you reported to the IRS the previous year.) Life insurance is to protect the people you care about after you're gone. Even if you aren't concerned about replacing your income (which is something you really should consider), everyone has final expenses and they aren't cheap. Everyone pays for life insurance in one way or another. Some pay for it a little over time, some pay for it all at once; the truly unlucky leave the burden of it to be paid by their loved ones. You'll get advice that you don't need life insurance if you don't have any dependents. Still, you're going to leave SOMEONE with a bill for final expenses, no matter what. And you may wait so long that you're no longer insurable. It's an awfully big gamble.
3. They are two completely different animals. YOU will never collect life insurance on yourself - it goes to those you leave behind. You collect disability - it helps you pay your bills if you're disabled. You're much more likely to need the disability than the life insurance - so disability costs more. But it depends on your age and how much you make (as payments are usually about 70% of your gross salary). You need to decide what you want insurance to do for you, then pick the product that fits the need.
4. Disability insurance will depend on your age, occupation, amount of coverage and waiting period. You need both life and disability. Take out a term life policy with an amount that is enough to pay for your funeral and final expenses including all outstanding loans. Term insurance is cheap. You also need the disability policy to pay your bills if you become disabled.