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Permalink Reply by Jon on February 18, 2010 at 2:02pm

Interesting, I just posted on Life Ins. I will look into Disability next. I am thinking my university alumni association might offer a decent rate on disability as well, as it should have a large pool to offer the underwriter.

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Permalink Reply by Will on February 19, 2010 at 12:00pm

Does anybody have ideas about this?

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Permalink Reply by Russel G. on February 19, 2010 at 12:18pm

Will, I frequently counsel my clients to look into long-term care insurance. The most recent statistics I have show that about 50% of Americans will suffer a long-term disability before they die, and 90% of our health care costs are incurred in the last few years of our lives.

A good long-term care policy will take the burden of end-of-life care off of your family (i.e. children and grandchildren) who usually bears the financial brunt of the care.

I am a big believer in term life insurance, because its purpose is clear: provide a monetary benefit if you die. I have yet to find a whole life policy that I am comfortable with from the standpoint of a policyholder. The "investment" just never seems to work out.

With any insurance: shop around and compare, and ask the questions the salesperson doesn't want to answer. Never buy what the salesperson is selling, buy what is right for you.

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Permalink Reply by Len L on February 19, 2010 at 6:19pm

Will, just to be clear...are you talking Long Term Disability or Long-Term Care?

Most employers offer a LTD plans. I believe mine pays 60% of my salary after 6 months (after the Short-Term Disability runs out). I'm actually not sure on the duration...probably should know this....

Long-Term Care is basically "Nursing Home" Insurance that will cover up to 3 year of Nursing Home care. THe premiums seemed absurdly expensive (even at my age) when my agent approached me about it so I passed it up.

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Permalink Reply by Will on February 19, 2010 at 6:39pm

Since I'm not an expert, I *should* say "I don't know," but I meant the first kind: "life" insurance for if you don't die but can't work.

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Permalink Reply by Sam Danger on February 20, 2010 at 2:32pm

Here's a good article from Wise Bread:
http://www.wisebread.com/disability-insurance-payments-and-pitfalls

I have a policy with State Farm for 60% of my pre-tax income, a 5 year benefit period, and a 180 day exclusion period. Costs me ~$300/year in premiums.

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Permalink Reply by Wesley Hawkins on February 21, 2010 at 5:09pm

I carry a long-term disability insurance policy. I opted for the slightly more costly "own occupation" type, which means that if you become disabled in such a way that you cannot perform the requirements of your own occupation (hence the designation), you can still collect your benefit and work a job in another field. I also have a policy that is a one-time payout in case i am ever diagnosed with a serious illness such as cancer, heart attack, stroke, etc. I pay a monthly premium based on the pay-out. I chose a $50,000 pay-out for $45 a month. The disability policy costs me about $75 a month. I took out both policies through Western-Southern Life, and I know that Country Insurance also offers them.

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Permalink Reply by Wesley Hawkins on February 21, 2010 at 8:14pm

It's a good idea to find an insurance agent with whom you can deal face to face and develop a relationship and rapport with, and whom you feel you can do business with for a long time to come. A good agent can tell you which one is right for your situation. I myself have a ridiculously inexpensive policy through my employer, which is fine, since i'm young with no children or mortgage that would require a big benefit distribution upon my death. But I also know that whenever i leave that job, i have a couple good insurance guys that will give me good advice about a new policy. You can always start out with a cheap policy with minimal coverage, then make changes to your coverage as necessary, for example if you get married and get a mortgage or whatever. Just be sure you do some homework (which you should be used to anyway) and ask the agents plenty of questions before you decide what to buy.

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Permalink Reply by Lexi on February 21, 2010 at 11:09pm

Will,

My dad and my friend's mom have both had very bad experiences with Provident. Who knows maybe they've changed in 10 years . . ..

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