Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Is long term disability necessary? Again these kind of questions fall to individual and what they need. Again Disability insurance is income insurance. If your income is not effected by being unable to work (passive income) then a Long Term Disability policy may not be necessary. How long could your disability be? Who knows? it hasn't happened yet. Figuring how long you want coverage to run or what options you want is a risk that you decide. Carrying no risk is really expensive, no doubt about that. Carrying some risk, will cost a few dollars as well. Assuming all risk may work for a person too, but.. if it doesn't well this where you read about people losing everything. Insurance is sharing risk with another entity. How much and how long is up to you.
If you need your paycheck to pay your bills and maintain a desirable standard of living, disability insurance is probably necessary. If you became disabled and unable to work for more than several months, it could take a year to get on Social Security Disability, and the benefit amount is very low. In addition, if you can work at "any" job, you may not qualify for SSDI.
By contrast, long term disability insurance can pay you more, the waiting period is usually only 3 months (whatever you specify in your policy), and if you have the "own occupation" feature on your policy, you will collect the benefit even if you can work at "any" job, but just cannot perform YOUR job.
In light of those facts, most people would consider long term DI an necessary expense.
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By contrast, long term disability insurance can pay you more, the waiting period is usually only 3 months (whatever you specify in your policy), and if you have the "own occupation" feature on your policy, you will collect the benefit even if you can work at "any" job, but just cannot perform YOUR job.
In light of those facts, most people would consider long term DI an necessary expense.