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Disability Insurance Question?

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Disability Insurance Question?

Postby Jethro » Thu May 11, 2017 3:48 pm

I have disability insurance with my employer but what happends when I get laid off. I have a friend who is offering me life insurance through NorthWestern Mutual what is the advantage or getting another disability insurance? Should I even get another one?
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Disability Insurance Question?

Postby Derward » Thu May 11, 2017 6:05 pm

If you convert the disability policy and keep paying for it, you'll still have it.

But you can't collect, if you become disabled while unemployed.
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Joined: Wed Mar 05, 2014 8:48 pm

Disability Insurance Question?

Postby cissie84 » Fri May 12, 2017 4:21 pm

Since you realize how dumb disability insurance is, don't you think its better to get health insurance instead of disability insurance?

Anyway, when you get laid off at work, you typically lose all your benefits.

If you are looking to get life insurance, you can add an option to the policy called "Waiver of Premium." This option or rider will pay all your premiums in case you become disabled before the age of 60. This option will cancel when you become 60 years old, unless you are currently on waiver, then it will remain in affect until the end of the policy date.
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Disability Insurance Question?

Postby Ulrich » Sun May 14, 2017 3:04 pm

I would talk with the benefits office at your job and see if this policy is the type that can be converted to a private disability insurance policy if you leave the company.
That way, if you are laid off, and then break your leg and can't work, you can collect from them.

If you are a young person, I would recommend buying disability insurance before life insurance.
Statistically speaking, you are 30% likely to suffer a disabling illness or injury lasting at least six weeks between the ages of 30 - 50.
So, unless you have enough savings set aside to live without pay for this length of time, you need disability insurance.

Life insurance basically replaces your income if you die.
You only need it if there is someone who relies on your income for their support - such as you have a child, or you are married and your spouse would need your income to make the house payments.
If you are single with no children, you probably don't need separate life insurance.
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Disability Insurance Question?

Postby Guiseppe » Wed May 17, 2017 1:37 pm

If you get laid off, most likely you will no longer have disability insurance with your own employer.
Disability insurance pays if you become disabled due to sickness/injury and are unable to work.
But if you are laid off, you are not working and even if you were to become disabled, you cannot collect, since you are no longer employed.

The only advantage I see of purchasing your own policy would be if you get laid off and find another job that does not have disability insurance with that job.
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Disability Insurance Question?

Postby Dewitt » Fri May 19, 2017 11:05 pm

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Disability Insurance Question?

Postby Birch » Thu May 25, 2017 6:30 pm

Most likely you will lose your disability benefit if you lose your job.
Let me ask you a question, do you pay for your disability insurance through work or does your employer.
If you were to miss work due to an injury the portion that is paid by your employer is taxable to you.
So you might think you have 60% of your salary covered when in fact you might have closer to 45% depending on your tax bracket.
Also, things such as bonuses and commission are usually not covered by group disability insurance.
Don't forget if you are out of work you can't contribute to your 401k.

To set the record straight, top rated insurance companies will pay benefits on an individual policy if you are unemployed or laid off.
They usually use a calculation based on past earnings over the last few years.
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