How much are you paying for Long Term Disability?

[zetta]

I want to purchase some additional Long Term Disability insurance for my husband (we can't get any for me because I'm currently a SAHM), but was shocked by some of the rates I've been quoted. I'm just wondering if my expectations are out of line.

For those of you who do have LTD, especially if it is not through your employer, how much are you paying? What parameters make the most difference in improving your rate? Which insurance company did you go through?

[disneysteve]

Re: How much are you paying for Long Term Disability?

I've been with Northwestern Mutual since about 1990. My monthly benefit is $7,494 and my premium is $391.28. There is actually a dividend being paid by one of the policies that brings my true payment down to $345.42.

I have not shopped around and don't plan to. There have been a lot of changes and cutbacks in the disability field and from what I've heard and read the policies being written today are much stricter and harder to collect on than the one I've got, so I'm hanging on to it, even if cheaper coverage is available.

[nanamom]

Re: How much are you paying for Long Term Disability?

i ws thinking abou this today since my DH SS stuff came in the mail. We don't have any ltd coverage except for SS. If (God forbid) something happens that puts him out of the working world we will have to pull the belt tight and have me work if he is able to keep DS2. It would have to be big to lay him out completely since he could work at home on th eocmputer pretty easily. In fact that is the plan if something happens prematurely to me.

[MonkeyMama]

Re: How much are you paying for Long Term Disability?

I think I paid about $200 for my premiums this year. It is offered through my professional association. I think it is about $3500/month coverage and I just turned 30 so the premiums doubled - ouch. On top of that I will probably get a $100 dividend to offset it - really only costs 1/2 what I pay up front.

Benefits in my field generally are squat so I turn to my professional association for a lot of discounts in different insurance coverages.

[cschin4]

Re: How much are you paying for Long Term Disability?

I pay $1200/yr. for a LT disability policy to age 65.

[disneysteve]

Re: How much are you paying for Long Term Disability?

I pay $1200/yr. for a LT disability policy to age 65.

What's the monthly benefit on the policy? That sounds incredibly cheap.

[cschin4]

Re: How much are you paying for Long Term Disability?

My LT disability is "occupation specific". I don't recall the exact benefit but I think it is about $4K per month. I purchased this is my early 20's when I was young and healthy and have just maintained the policy. I have looked at other policies but to get a similar benefit now would be much more expensive.

[LivingAlmostLarge]

Re: How much are you paying for Long Term Disability?

where do you get long term disablity from? Do you also haev short term disability? When should you get these policies?

[disneysteve]

Re: How much are you paying for Long Term Disability?

where do you get long term disablity from? Do you also haev short term disability? When should you get these policies?

My long term is from Northwestern Mutual. I got my policy when I was an intern, about age 25-26.

My short term coverage is my emergency fund. If I'm unable to work for some reason, I have savings to cover expenses until my long term policy kicks in.

[MonkeyMama]

Re: How much are you paying for Long Term Disability?

That is an interesting point. I received life insurance elsewhere, because I was able to lock it in for 30 years at an excellent rate. For LT disability, I just got it and it is pretty cheap I should look around and see if I can lock in rates longer-term though. Will put it on my list I guess.

California has excellent state disability for short-term so I am well covered if something happened to me today. I have used it for 2 pregnancies and am very pleased with it. I would probably get paid more than my LT policy, monthly. LT disability generally has a lower premium if you have a longer wait period, so it is good to have cash or ST disability to cover you in the initial year or so of disability.