Long term disability insurance

[hillview]

DH and I each have disability insurance at a max level (15k a month). DH is no longer drawing a salary and is 57 years old -- he qualifies for SSDI, I am thinking we can cancel his policy. It costs us 8k a year. PS neither of us is disabled and DH is in great shape, I know this isn't a guarantee of no issues but he has no medical issues.

[mikala]

Wait a sec, isn't SSDI social security for disability? But you're saying neither of you are disabled? What am I missing?

[NCGrandma]

I’m a bit confused, too. Is this what you’re saying, OP?
Even though your DH is currently healthy, you know that at some point he may become disabled so you want to have some sort of disability coverage. You are thinking that SSDI may be adequate instead of your current policy. If that’s an accurate summary, a couple of questions:
1. Does his current policy still cover him now that he’s no longer drawing a salary? My understanding of disability insurance is that it is intended to replace a portion of salary lost because of disability.
2. Will SSDI cover him since he’s not drawing a salary?
3. If these do provide coverage, how much would SSDI provide? How much would his current policy provide? Would the SSDI amount be adequate?


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[hillview]

Thanks all. Sorry for my crummy explanation.
1. Turns out that although my insurance broker told me it would cover him now, upon a careful reading of his policy it does not.
2. I don't know I assume (BAD IDEA) that he would qualify even if not currently working
3. SSDI is about 1/5 of what his current (no longer valid) policy would cover so better than nothing but hey it helps.

With a little more research I have decided we need to cancel his LTD insurance as he would not be paid now anyway if he became disabled as he is not currently employed.

[NCGrandma]

Thanks all. Sorry for my crummy explanation.
1. Turns out that although my insurance broker told me it would cover him now, upon a careful reading of his policy it does not.
2. I don't know I assume (BAD IDEA) that he would qualify even if not currently working
3. SSDI is about 1/5 of what his current (no longer valid) policy would cover so better than nothing but hey it helps.

With a little more research I have decided we need to cancel his LTD insurance as he would not be paid now anyway if he became disabled as he is not currently employed.

Glad that you’re getting more accurate info about your current policy.

Because this piqued my curiosity, I looked at the Social Security website and learned that SSDI pays benefits for people "who can’t work because they have a medical condition ...”. It might be helpful to browse https://www.ssa.gov/benefits/disability/ and figure out whether this applies to your DH's situation.



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[doberbrat]

I would cancel ltd as its to replace income. One thing I keep meaning to look into for ourselves is long term care (ie, nursing home) ins. as that is the real financial killer for many adults who become incapacitated.

[Melbel]

A consideration for others - Employer provided disability insurance is subject to ERISA, a federal statute that gives insurance companies extremely broad discretion to deny claims. Policies paid for by the insured have a more reasonable judicial review process.