Author Topic: Life & Disability insurance through work - is it wort the cost?  (Read 2261 times)

moustache1979

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Looking for advice on what types of "other" insurance programs are worthwhile.  I have the option of choosing any/all of the below for work.  Amounts and monthly cost are listed.  In addition i have term life insurance that runs ~$40/month for $500k.  I am mid-30's with a wife of the same age and 3 kids under age 6.

Critical Illness    Core + Supplemental ($3,000 + $10,000) $13,000.00 $4.66
Basic Life Insurance $300,000.00    $21.24
Supplemental Life Insurance   $430,000.00    $14.58
Supplemental AD&D    $250,000    $4.50
Dependent AD&D    $250,000    $4.50
Long Term Disability    $86,000    $40.28
Long Term Care   $9.28

huadpe

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Re: Life & Disability insurance through work - is it wort the cost?
« Reply #1 on: March 04, 2014, 12:10:02 PM »
Depends on your 'stash, but I'd probably go for the long term disability only on that list.  AD&D is just another way of dying really and you should keep enough life insurance for it, regardless of cause of death.  LTC isn't worthwhile til your 50s/60s, especially an employer based plan, since it's quite unlikely you'd need to go to a nursing home directly from working (physical therapy/rehab should be covered by your health insurance, not LTC insurance).

If the $500k is enough life insurance for you, then that's fine.  If not, buy a new policy outside your employer.  Since if you become too sick to work and are terminal, you may lose your employer based policy, same problem as the LTC insurance.

shawnspencer04

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Re: Life & Disability insurance through work - is it wort the cost?
« Reply #2 on: October 13, 2020, 02:19:49 PM »
You should definitely consider Disability Insurance, more than one in four 20-year-olds today will be unable to work due to an illness or injury for 1 year or more during their life before retirement.

As a rule of thumb, you could expect to pay between 1-3% of your annual income for a high-quality disability insurance plan. The price could end up being more or less than 1-3%, but on average we strive to structure a policy that fits into this price range. To get an accurate estimation check out online calculators such as https://www.disabilityquotes.com/disability-insurance-quote , its definitely better to be safe than sorry.

debbie does duncan

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Re: Life & Disability insurance through work - is it wort the cost?
« Reply #3 on: October 13, 2020, 04:45:32 PM »
LTD saved my sorry self. I can not recommend this enough.

Sun Hat

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Re: Life & Disability insurance through work - is it wort the cost?
« Reply #4 on: October 16, 2020, 07:01:14 AM »
LTD saved my sorry self. I can not recommend this enough.

Me too. LTD insurance was mandatory through my work and I often grumbled about having to pay it when I was young and carefree, but it's been the difference between dealing with a disability and dealing with a disability while also losing 70% of my income.

A friend's husband died when their kids were 9 and 4. She had to raise her two kids while dealing with her own grief, and I'm really glad that she didn't have money worries on top of it.

In your situation, I'd load up on insurance at least until your kids are launched and you have a nice big stash that you can use to self-insure. Think of it as a gift to your future self and spouse.

snacky

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Re: Life & Disability insurance through work - is it wort the cost?
« Reply #5 on: October 16, 2020, 08:02:35 AM »
LTD saved my sorry self. I can not recommend this enough.

Me three. I could not have predicted that I would become permanently disabled in my early 30's, but without LTD I would be on welfare right now, instead of living comfortably on a small but workable income.

sisto

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Re: Life & Disability insurance through work - is it wort the cost?
« Reply #6 on: October 16, 2020, 03:25:54 PM »
Another vote for LTD. I'm so thankful my employer provided this to me. I totally took it for granted, now I'm using it.