Life Insurance

[gsganzer]

Thank you for the advice. I've been doing a little google searching online, but haven't really seen anything yet. I'll probably start talking to some insurance people in town. I don't know any, I have all my insurance online through Geico.

What is disability insurance? Does it work for people that are self employed? I always figured that is what my credit card was for. Use it when I'm sick and not able to work, then pay it off when I'm back to work.

Eddie,
I think disability insurance refers to long term disability. If you got hurt to a degree that you couldn't return to work and/or debilitated and unable to return to your previous level of work. I'm going to start looking into this for myself. In a sense, being permanently disabled is almost a bigger burden on the survivors then being killed outright.

 

[k0ua]

Disability insurance is income replacement when you can no longer work. There is a full range of options on this type of coverage. Again you need to contact a local agent you trust to go thru all of the variables. This is often coverage until you can get on SS disability.

 

[Looking4new]

Yep, this is a biggy.
The policy makes sure that we will get 2/3s of my salary AFTER Social Security pays. In other words, if Social Security pays for half of my income, the company policy pays the difference to get me to 2/3s, or about 17% give or take.

Get disability if you can afford it, but read the wee, small, itty, bitty, tiny, small print.
Dan

And take it to your Philadelphia lawyer and get him/her to interpret it for you.
I'm not trying to be a smart *** here, but only a lawyer can interpret insurance policies with all their to wits and to wherefores.

 

[kenmac]

The point of term insurance is just that, you buy it while you need the protection it offers, and hopefully you'll build up your nest egg over your working career to the point where you'll be self insured by the time you retire.

https://www.daveramsey.com/blog/the-truth-about-life-insurance/

That's the correct answer.. That's why I don't care to buy anymore than I have now.. If I out live my term.. My wife will be ok, and vise versa ..

Like koua said,, a lot of people wouldn't take those term savings ,and invest it.
Just like those same people get a large sum of $$ back from the IRS each yr, because they can't save any other way....

I have asked some I know, why do you let the IRS keep your $$ all year then, give it back to you with no interest ?? Answer,, If I put it n the bank, I'll just go get it out & spend it... Just can't fix stupid !!

 

[dmccarty]

...

What is disability insurance? Does it work for people that are self employed? I always figured that is what my credit card was for. Use it when I'm sick and not able to work, then pay it off when I'm back to work.

I am talking about long term disability insurance but we really should be discussing both long and short term disability. My company pays for short term disability, I can't remember if it is 6 or 12 months, after which I would go on long term disability. Short term disability will pay my full salary for the given time period then I would go on long term disability. The base coverage for long term disability is 50% but I pay a bit more, it is not much, to get to 2/3s of my salary.

When I was younger and a contractor I looked at paying for long term disability. This was quite a long time ago, and I can't remember all of the details, but I do remember this much, it was expensive. :laughing::laughing::laughing: Now, I only contacted one company and did not compare prices/policies. I did not follow through mostly because they wanted me to meet a nurse to give blood and such. I did not have the time, which is really not a good excuse, but I was young, healthy and had no dependents. The policy was expensive but after a year or so, if I i did not have a claim, they paid me quite a bit of money back and the policy cost went down drastically.

Later,
Dan

 

[dmccarty]

And take it to your Philadelphia lawyer and get him/her to interpret it for you.
I'm not trying to be a smart *** here, but only a lawyer can interpret insurance policies with all their to wits and to wherefores.

Well, I am going to be the dumb *** here and say I did not need a lawyer since the policy was pretty clear. The problem was I assumed and did not read which makes me a dumb ***. :banghead: This a company benefit and how the policy is described led me and others to think it would pay 1/2 or 2/3 of my pay. They do not mention the Social Security link until you read the policy which is kinda strange since it would only take a sentence or two to explain. Its not like the company is trying to put a fast one over you since they have have nothing to gain or loose with this in any way. My guess is that the person writing this up does not know either....

But my friend found out the hard way when he was diagnosed with ALS. :shocked:

Later,
Dan

 

[Travelover]

Re long term disability insurance, there are several flavors. One pays if you cannot continue in your current profession, others only pay if you cannot work at all in any job. I know that it costs money, but it would suck to try to live on Social Security disability payments.

 

[kenmac]

it would suck to try to live on Social Security disability payments.

I know some that try.... $730.00 per mo.. They can't live on that ,so they steal from others and sale it for scrap..

 

[k0ua]

There are many type of disability insurance. Long term, Short term, Accident only, and Business Overhead expense. There is a lot to know.

 

[murphy1244]

I know some that try.... $730.00 per mo.. They can't live on that ,so they steal from others and sale it for scrap..

They are not all that low.