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| *Loan,banking and credit>>>disability insurance |
Is $300 per month too much to pay for disability insurance? |
Is $300 per month too much to pay for disability insurance? not if you are currently sitting in a wheelchair on oxygen or over 100 years old with $10,000 a month of coverage. For the most part, you need to shop around a little bit and remember that there are alot of coverages and non-covered clauses from policy to policy so you don't want to shop by price alone. Check out a broker that represents various products and services available to you. There are some online shopping sites for insurance also. Ask the questions BEFORE you need to file claims. Uh, yeah!! Maybe $20!! Uh...probably. I pay $7.00 a month through work. It depends on if you work for a large company. If you do, your rates will be lower. If you go out and buy the insurance policy yourself, outside of where you work, it's going to cost a bunch more. My husband pays about $8 per month for short term disability, and about $12 a month for long term disability. The short term pays 60% of your paycheck for 6 weeks. I am not sure what the benefits are for long term....I was able to use the short term for my maternity leave. If it is too much for you personally, then yes. Why don't you include some useful information such as your age, income, and general health? Because if you are 20 years old, in good health, and earning about 24,000/ year - then you shouldn't be buying disability insurance. However, if you are 45 years old, earning 60,000 year and supporting a family, or in poor health, or deteriorating health, then maybe $300 isn't necessarily such a bad deal. The premium will vary primarily on how much coverage, your occupation, your age, the type of benefits you are getting, and if you have any medical conditions. If you're older (say 50-ish), work in a profession where you could easily get injured (construction) or an injury could keep you from working (surgeon could mess up their hand), you will have higher premiums. Hypotethically say you're 30, are in a managment position, no medical conditions. I'll guess that your annual premium is about $100 per year for $1000 of replacement income per month. $300 per month would translate to $36,000 of coverage (which is more than a company would ever let you buy for anti-selective reasons). I don't have rates memorized, but I'll hypotethically say a 50 year old will have a premium that is double that. And double it again if you're in a high-risk occupation (either risk of injury or medical occupations. Some policies use what is called "modified own occupation". This typically means you will be covered if you cannot do your job for 2 years, and then if you cannot do any job that your are reasonable fit to do after that period (for example, a surgeon messes up their hand. They get coverage for 2 years. They then begin teaching at med school. Benefits are reduced after two years to take into account the reduced income). Policies using "own occupation" will be more expensive due to it paying out longer. If your policy has this, double the numbers I used up above. Depending on your job and the coverage desired, "modified own occ" may be all your need and will be cheaper. And if you have a bad back (ever seen a chiropractor for it), they will bump up the premium some more to take into account the increased risk of future back problems. One more. The period of coverage that you get. A 2-year benefit period will cost less than a 5-yr, which will cost less than a "to age 65", which will be less than lifetime. I assumed a "to age 65" sort of benefit. Inflation indexing and additional purchase benefits will also add to your premium. I am an actuary who has worked with disability income policies |
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