Do you have long term disability insurance?

Income and Expense

I am wondering if the average HENRY has long term disability insurance and what percent of your income you pay annually for it. Any information about common riders would be helpful as well.

Also, is there a more efficient way, or other way in general, in which you hedge the risk?

in HENRYfinanceby USAG1748

88%

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FahkDizchit

Self insure? You mean, just pay for it?

bankrupt_boy

Yes

discord-ian

Is op talking about long-term care insurance or long-term disability insurance?

ahut

Yes. For both of us. We bought it at 33 and haven’t looked back. Maxed out policies. Own Occupation, wage increase rider (can increase coverage without reapplying), annual cost of living auto adjustment, the whole 9 yards. It’s expensive AF but it’s the protection we want.

Why? My mom’s mom had Alzheimer’s and my wife’s dad had early onset Alzheimer’s for 10 years, died at 62. He was a business owner and If it wasn’t for his owner LTD policy the cost of care and medicine would have wiped out their savings. Same thing with his Term Life policy. Literally life savers for his wife, who is now able to live out a very comfortable life.

herasi

Who did you go through for this kind of coverage?

ahut

Our financial advisor connected us to a good insurance agent, who crafted our coverage plan based on on our needs and budget (and to fit in with what we get through our employers). Then they shopped the plans with a few carriers. We have term life policies with Penn Mutual and Lincoln Financial, and Disability through The Standard.

Use a good agent for this kind of thing.

Edit: typo

Sunny_Hill_1

Yes, own occupation disability.

LithiumBreakfast

Yes. I'm a 1099 employee so if I lose my job I'd be screwed all around. Disability from the government and state couldn't pay my mortgage alone.

rizzo1717

I have accident, cancer, short term and long term disability policies, through NTA and CAPF.

Wunderkinds

Yes.

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btc26

I gots it. For the aforementioned experiences of others depleting family wealth.

prophetjohn

I have an LTD policy through work that pays out 65% of salary for up to a year. It costs me $800/yr

An LTD policy that covers me to age 65 would be like 500+ per month, which I’m not looking to get right now

bertie9488

Own occupation LTD, with option for increase in coverage without reapplying, and COLA adjustment. 90 day elimination period. Pays out until age 65. I pay about 1% of my annual income for it. Own occ is way more expensive, but as a surgeon it’s not negotiable. There are a multitude of ways that I can become unable to perform my well paying job that do not render me disabled enough to collect on a non own occ policy.

Pay for insurance until you can self insure, ie have enough saved to retire if you become disabled.

St_BobbyBarbarian

I do, but via work. 65% of my current income

problemita

I have own occupation long term disability. Probably would be wise to get long term care insurance too but I don’t have it yet and ~they’re super different things~

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rizzo1717

OP isn’t talking about life insurance.