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| *Loan,banking and credit>>>disability insurance |
For a single male, at what age is a disability insurance policy probably no longer necessary? |
In other words, since the likelihood of needing this policy diminishes with age and the policy is good until age 65, when would it be advisable to stop paying premiums and perhaps invest them instead? Thank you. If I qualified for a DI policy when I was young - having gotten a low level premium - and kept it in force all those years, why would I want to stop paying on it prior to leaving the work force? DI insurance replaces income if I can't work. The only reason to drop it would be if I no longer needed to protect my income against loss due to disability. Another reason might be that my "unearned income" (rentals, dividends, etc.) had become sufficient to sustain lifestyle should I not be able to "earn" income. But, if I or my family depend on my earning ability and I have an inforce DI policy, I would keep it in force. At whatever age you feel comfortable replacing your potential lost income with whatever savings you have accumulated. If, at some point in your life, you feel like you have enough savings to make up for what you won't make at work (or not at work), then drop the coverage and save up your premiums. Also consider how much money you are going to need in later life. At some point in your life, you will no longer need your income to pay for kids college (they'll be done by then) and hopefully your house will be paid off and then you won't need much income to support that and can drop your coverage accordingly. How do you figure the likelihood of being disabled DECREASES with age? It doesn't - it increases. Also, your INCOME increases with age, so you are more likely to put in a claim at 50 than 30. Also, you're more likely to NEED the income at 50 than 30 (think, sending kids through college, paying off the mortgage, maintaining health insurance). The time to stop paying the premiums and investing, is when the premiums become high enough to become a burden. Then you STILL make the payments, but to YOU instead. |
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