First, I would not consider long term disability an investment. It is a protection to cover most people's most important asset which is their ability to earn a living. If you work for an income and it is a must, then long term disability is a must as well. This pays you a portion of your wages when you become injured or so ill you can no longer earn money to live.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Is long term disability insurance a good investment? Yes, using a broad definition of investment. Having a good Long Term Disability Policy protects your investments and assets from liquidation by providing an income stream ( you can and should have an inflation rider) to help you maintain or prolong a lifestyle. Technically, insurance is insurance, but you can consider it to be an investment in your asset protection.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Because long term disability insurance provides protection for a certain period of time it hasn’t any cash value and could not be considered an investment. Long term disability insurance protects what is most people’s most important asset, their ability to work. If people depend upon your ability to work, a disability policy must be considered. It is much more likely that you will experience a long term disability than it is you will die before a given age. Disability is living death in that there isn’t any income and yet you remain as a consumer. It is extremely popular coverage among professionals.
The literal definition of investment is "the action or process of investing money for profit or material result." The basic categories of financial investments are ownership (stock, real estate, etc), lending (bonds, CD's, etc), and cash equivalents (money market fund, CD, etc). Disability insurance does not fit that definition and does not fit into any of those categories.
However, informally, people often use this phrase as a way of asking: "Which is a better way of spending my money? This or that?" I imagine you are looking at your paycheck and wondering what is the most responsible way to spend it, considering all the things that could happen in the future.
Well, based on that, Disability Insurance is a usually a good investment, because the chances of you becoming disabled are much higher than you dying, or going to a nursing home, or many of the other types of insurance out there. Also, losing one's paycheck has a great impact on most families. If your paycheck is not crucial to your family, getting life insurance or other types of insurance may be a better investment.
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However, informally, people often use this phrase as a way of asking: "Which is a better way of spending my money? This or that?" I imagine you are looking at your paycheck and wondering what is the most responsible way to spend it, considering all the things that could happen in the future.
Well, based on that, Disability Insurance is a usually a good investment, because the chances of you becoming disabled are much higher than you dying, or going to a nursing home, or many of the other types of insurance out there. Also, losing one's paycheck has a great impact on most families. If your paycheck is not crucial to your family, getting life insurance or other types of insurance may be a better investment.