Disability Insurance

[CCFREEDOM]

I have applied for disability insurance with MetLife. The premiums are $375.00 for my personal and $80.00 for my business. I really should be concentrating on paying off my $54,000 debt., but have been too worried about getting sick and not being able to work. I am in my early 50's, I am self employed and depend on my income to protect my assets.

The insurance would pay $4000 indefinitely for my personal and the business would pay $3000 per month for a year to keep the business running.

I make about $10,000 and out of that pay myself $4,000 to pay my home bills. I have created a budget for my business as well as for my home.

My business overhead is $2300, I pay myself $4,000, have scheduled a savings plan of $800 per month. I am hoping to pay an additional $1400.00 towards credit card payments.

It looks good when I write it and looks good on the budget sheet..but since I havent worked on a budget in so long...I am trying to catch up and its very hard....but I am looking forward to a nice flow as I pay my bills.

Anyway...is having this disability insurance policy a smart idea?

[southerndoc]

Originally Posted by CCFREEDOM

Anyway...is having this disability insurance policy a smart idea?

Absolutely! Unless you have a significant savings to draw from (a million plus), rich family members that will support you, or a significant other with a hefty income, then yes, you need disability insurance.

What happens if you become disabled and cannot work? Do you think you can survive off state disability benefits? If so, then you don't need private disability insurance. If not, then you need it.

I looked at MetLife, Berkshire (Guardian), and one other company. Only 3 will insure physicians in "own occupation" type roles. I ended up going with Berkshire life because they gave the most bang for buck. It's slightly more than MetLife, but is a better policy in my opinion.

Make sure you get quotes from more than one insurer. It would be beneficial to go through an independent agent that can get you quotes from all the disability insurers.

[CCFREEDOM]

I dont have any backup....this additional expense will be hard on me..but at least I can sleep better knowing that if I get an illness I am covered.

I went through an agent..but he kept talking about numbers and going back and forth and I then took his word that this was the best policy...with MetLife.

[lovcom]

CCFreedom, the policy was a good move!!!

Did you shop around? You still can if you want...

How many months of savings do you have in your EF? I would suggest your monthly nut times 36 months at the very least.

I would make the biggest credit card payments you can going forward until it's all gone, and promise yourself you'll never crank up the debt again.

I was in your shoes, and I got out....so I know exactly how you feel...it took me 18 months but I got to zero debt, and 36 months (or more) of emergency fund savings. Life is good...and you can and will do it too!

[CCFREEDOM]

Thank you Lovcom, you give me hope.

I will continue to post here to keep reminding myself that I need to do this for my own sanity and happiness. These credit card bills are not worth the stress I am going through.