Long Term Disability Insurance: anyone have?

[mafibisha]

We're only in our early 40s but several friends are thinking of getting long term disability insurance, just in case.

Hopefully we'll never need it but would like to be prepared.

So, where does one go to purchase such insurance? Can anyone recommend an amount, at what age to purchase, and what kind to look for? This is a totally new concept so open to any ideas or feedback.

Thanks so much in advance.

 

[snappy]

My husband and I are both CPA's. We have had disibility insurance on him for about 7 years. We have it through the AICPA, a professional society for CPA's. Because of the nature of the group, we receive a nice break on the premiums. The premiums go up as your age increases. It works like term insurance, you are not locked in to a lower rate by purchasing the policy earlier. I think the premium goes at age 40, 50, 60 etc.

Your needs would depend on your financial responsibilities, children, mortgage, etc. You can select how much income you want to replace as well as the delay from the date you become disabled until the insurance kicks in.

I only know about this particular provider. I would think you should see if you qualify for anything through work or with a professional group like ours, then compare to what you can get privately.

 

[kldmom2000]

My DH has to have it due to being self-employed. He bought it through the same company that we have our term and whole life policies through... It works similar to the term life in that it's for a certain # of years and I think right now we pay around $95 a month for his plan???? It's to cover any household expenses should he become disabled... hopefully we won't ever have to use it! (Oh, and he's almost 35 and I'm nearly 33)

 

[pearlieq]

Are you talking about long-term disability insurance (to replace your wages if you are injured or become too ill to work) or long term care insurance (to conver nursing home care you may need someday)?

At your age, I'd recommend long-term disability insurance for sure. Your most valuable asset is your ability to work and you're in your prime earning years. If you don't have that, you should look into it ASAP.

As for long term care insurance, you may be a little young for it, but they do say you should purchase it early. You might want to talk to a financial planner about that one.

 

[floridafam]

I was going to ask this same question.

I read somewhere that one is more likely to use long term disability insurance than life insurance at a certain age.

We have disability through DH's employer but I've often wondered if we should have an additional private policy.

 

[barkley]

you realy have to look at the fine print. i had what is still considered excellent coverage by industry standards but i found the workings to be very lacking when the time came to use it. most have a waiting period during which you must be totaly disabled before you can apply (mine was 6 months)-they do not count partial time out or dr. mandated reduced work scheduals towards that six months. once the waiting period is over you can apply, but it can take a minimum of 60-90 days for them to gather all of the pertinant info. to make a decision (they will have to send medical forms to doctors, attendance record requests to employers). AND when a policy says it will pay x percentage of you average pre disability salary-they mean flat salary, not commissions, not regular overtime, not any pay differentials. they can also use the salary period that is lowest (in my case i was out alot in the final year and it resulted in lowering my income-they took that lower income vs my average salary in the years preceding).

so a disability can occur and between the waiting period and the processing of application period it may be 9 months before you see any funds. most policies also deduct any other disability moneys you are receiving from the benefit (social security, state disability, workmans's comp, accrued sick leave...). and many also have provisions wherein if you receive any payout for a disability from a 3rd party (retroactive social security disability, workman's comp, auto accident settlement)-all previously paid out monies are deemed loans and must be repaid in full.

in looking at one i would question"
*is this in any way a loan program for any purposes
*what income do you count against the benefit
*what formula do you use to determine my salary for computation
*what is the wait period/what is the actual processing time once the wait period has completed and an application has been made.

 

[OhMari]

My husband gets his through his Health Insurance at work. It is around $24 a month.

I asked for disability ins at my last review this past July and my boss told me he will look into it. I'll probably get it this year and my boss will feel he gave me a big benefit, even though it will come out of my paycheck.