which is most important: life ins, short term, or long term disability ins?

[mmtsh]

My employer does not offer short or long term disability. There is an Aflac agent that comes in, but we have to pay for our own. The aflac agent says short term disability, either 3 month, 6 month plan, is more important because if you are disabled for more than 6 months, you're likely to be disabled for a very long time and qualify for disability through social security. I don’t what percentage of one’s income Soc Sec pays for disability.

My home/car agent thinks long term disability is more important because in my case I could live about 3 months without a pay check with a safety net I have set aside, and after I suffer out the waiting period until long term kicks in, I would coverage until I was 65. He thinks Social Security Disability would not be enough coverage if I qualified.

I have a life insurance policy through work that ends when I leave there. It covers me for 1 times my yearly salary. I do not have any other life insurance My family claims term life insurance is the most important until my kids are 18 and when I turn 65 I will have enough through 401k and a pension from a previous job, for my burial expenses. I would need a term policy for 15 yrs to cover me until my kids are grown.

I can not afford to do all 3. So I have to pick which would be the best.

[myrdale]

I am leaning between the long term and life insurance.

Why not short term? As you said you have a small emergency fund established already that you could rely on if needed for the short term.

Considering the fact that you have children I am going to put more weight on the life insurance. However I think I would shop around and look for a 20 or 30 year term policy. These are relatively inexpensive. Additionally I would imagine you will get much higher coverage than that offered by your employer. One years salary I am assuming is in the range of $30 to $60k? It does not go very far especially if your leaving your family with any possible mortgage to pay and college.

If you can find a cheap term policy, you should be able to afford the long term insurance.

Oh I should mention that I do not know anything about Alfac in general, hopefully someone else can speak on it. I do have both long term and short term myself, but my employer pays 90% of it.

[swanson719]

Social Security Disability is a very difficult issue. For starters, they take your average wage from the time you started working to the point you become disabled, and then pay you about 50% of that. You also have to be disabled for at least a year before you can apply for Soc. Sec. Disability. To that end, if you cannot afford a solid 18 months of no work, then long term disability would be best. While it would lower the amount of Soc. Sec. Disability you would be entitled to, you would be able to make it through that 15+ month gap between your EF running out and Soc. Sec. Disability kicking in. Disability is also notoriously difficult to get, and often ends up in court. That was not our case, as DW has one of "cut and dry" issues listed in their paperwork, but we have relatives who spent years trying to get disability.

Life Insurance would be essential if anyone depends on your income. It's too cheap not to have it. I carry $500,000 for me and $100,000 for DW, through my work, and we pay about $35 a month to cover both of us. I'm 22 and DW turn 26 next week and is 100% medically disabled due to kidney failure. A healthy person should be paying less.

Short term disability is the short straw here to me. If you have a small EF, then you're good.

To me, I would shop life insurance through private companies. You should be able to get a term policy that would be enough to pay off the mortgage and cover living expenses for 15 years for less than $50 a month if you're a non smoker and healthy.

[MonkeyMama]

To me, I would shop life insurance through private companies. You should be able to get a term policy that would be enough to pay off the mortgage and cover living expenses for 15 years for less than $50 a month if you're a non smoker and healthy.

Agreed. What kind of prices are we talking about here?

I'd say all of the above, and make it a priority. (Though short-term is probably the least important. I wouldn't stress about it if you can't afford it).

My Long-Term Disability, which is far more generous than social security, costs about $200 per year. To replace 75% of my income. A complete no brainer. I'd put this on the top of the list because the average person is WAY more likely to become disabled than to die prematurely.

My life insurance (about 10 times income) also costs about $200 per year. It's a 30-year term policy. Was purchased in my 20s - so very cheap.

These are ALL private insurance policies.

[jIM_Ohio]

This is a good question

Because you have people depending on your income, Term insurance is at top of list (for me).

It is "inexpensive"- we pay about $40/mo for 500k 20 yr term I believe.

I would then weigh other options with costs... and long term disability makes sense because you have a decent short term reserve in your EF.

Can you outline the costs of each type you are dealing with? THX!

[Thrif-t]

Are you married does your spouse work? Could you live on their pay if you were disabled? You said you had kids, if I had a spouse who could work and I could only pick one I'd pick the life insurance because I'd want my family taken care of in the case of my demise.

[mmtsh]

[QUOTE)

My Long-Term Disability, which is far more generous than social security, costs about $200 per year. To replace 75% of my income.


These are ALL private insurance policies.[/QUOTE]

I'm 40, so I don't know if I could get a long term policy for those rates. I read long term usually costs about 3% of your yearly salary, which would be about $2100 per year based on 100% percent of my income. Or, $175.00 per month, or $13500 a month at 75% of my income.