Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Do you need long term disability? Well it will depend on what you have saved and set aside for yourself. Having assets that you are willing to liquidate allows you to push the need for long term care back and will lower the premium. The need is going to be based on what you have, what you need and what standard of living you want to maintain if you become disabled.
If you cannot live for more than a few months without your paycheck, you need long term disability insurance. Becoming disabled, even for several months, is a traumatic experience. It affects you physically and emotionally. Being faced with financial hardship on top of that can be devastating.
Disability insurance pays you income while you are disabled, in cash, so you can use it where it is needed. Nothing is more valuable than that when you are hurting and unable to pay your bills, aside from getting better and the support of those around you.
That depends on how long you could live without your paycheck. Long term disability insurance is designed to replace a portion of your income if you were to become sick or injured and could no longer work.
Consider how much your ability to make an income is worth. If you make $50,000 per year and assuming you never got another raise and were planning on working for 30 more years, your income would be worth $1,500,000 ($50,000 X 30).
This about it this way...if your car is worth $15,000 and lets assume you pay $100 per month for car insurance. If your income is worth $1,500,000, doesn't it make sense to pay $100 per month for a long term disability policy to protect that?
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Disability insurance pays you income while you are disabled, in cash, so you can use it where it is needed. Nothing is more valuable than that when you are hurting and unable to pay your bills, aside from getting better and the support of those around you.
Consider how much your ability to make an income is worth. If you make $50,000 per year and assuming you never got another raise and were planning on working for 30 more years, your income would be worth $1,500,000 ($50,000 X 30).
This about it this way...if your car is worth $15,000 and lets assume you pay $100 per month for car insurance. If your income is worth $1,500,000, doesn't it make sense to pay $100 per month for a long term disability policy to protect that?