Launching: Disability Insurance

VeryHappy
Mon, 24 Oct 2016 11:19:15 +0000

You are more likely to become disabled at some point in your career than you are to die, yet most people worry about life insurance, not disability coverage. You and your D are wise to consider this.

Even in the five states that have disability programs, the benefits are paltry.

Before she buys this, make sure her employer doesn’t offer something. Also, make sure she can keep the plan as long as she wants to, even if she moves to another part of the country. Will the premiums increase as she gets older? Make sure the plan covers not only physical disabilities but also mental disabilities. (Some disability plans only cover mental disabilities for a period of time – say, two years.) Make sure that if she does have a disability and needs to collect, that the plan will pay her a benefit until (a) she dies, (b) she’s no longer disabled, or © she reaches age 65. Make sure that the plan would consider her to be disabled if she is unable to work in her own occupation for at least two years, and in any occupation after that. (Known as “own occ/any occ.”)