Do You Really Need Long-Term Disability Insurance? (How Much Do You Need?)

Is long-term disability insurance something worth considering? If you need it, how much disability insurance should you purchase and what percentage of your income should it cover?

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[danifuzi]

I am very happy I had long term disability. I suffered a brain stem stroke and left with many disabilities not allowing me to work as a nurse. But things I did not know are; retirement and SSDI payments are deducted from the long term disability benefits. So be prepared. But overall it saved my having to lose my living I worked 30 yrs to establish (home, vehicles etc). Make sure as they said take the return to work in the same capacity otherwise they will try to get you to work and not have to pay. Healthcare alone is astronomically expensive and even though you may pay each month for a “what if” occurrence, it can be a life saver. I was healthy and in an instant life changed.

[Wheelz]

Take it from someone who was paralyzed only 3 years into a real career GET LONGTERM DISABILITY. I wasn't making a lot of money by any means but my income was basically cut in half going from working salary to just disability and a lot of new medical bills and debt to go along with injury

[michaeldbouck]

I have DI through my employer which would handle the < 6 months case. Generally I'm highly skeptical of insurance - especially DI and Long Term Care insurance. In both DI/LTC scenarios you are at the whim of their fine print and claims adjusters about how disabled or in need of long-term care you are (using their criteria). They will also be making this determination when you are at your most vulnerable (i.e. disabled or in need of LTC). Insurance makes a profit by collecting premiums/denying claims. That said - if you go with either I'd highly recommend reading all the fine print and maybe having an attorney take a look at it.

[laundrygoddess]

My 54 year old partner got dementia. We would have been screwed without di insurance. Screwed. If you can't live without your income then you need to protect your income to cover your basic needs

[thomasschlund]

Money is not meant to control people, rather it is meant to be put to work producing more money for you. You cannot build wealth without putting money in its rightful place.

[hisagisan]

Some things not mentioned in the video. If the employer pays for the disability coverage it will likely be taxable. And if your income is within a certain threshold, SSDI could be an option. Just know that it’s something you apply for AFTER your disability and benefits could take a year or longer start. Unlike having an elimination period of 30 days or so with LTDI.

[anniealexander]

I don't trust insurance companies. They have fine print to get out of paying. My mom paid insurance for decades just to find out it wasn't worth the paper it was written on.

[davidwhelchel]

If your outflow exceeds you intake, your upkeep is sure to be your downfall.