Since I’ve gone to one income everything depends on my take. If I fell off a roof or anything happened that stopped me from earning a living I’d be in huge trouble. If you carry disability insurance where did you go for it?
I started carrying it this year. Costs me $70 a month which will pay me around $40k a year if something happens. Won’t replace alot of the income but will at least keep the very basic bills paid. My insurance agent put it in terms that really made me think about it and he said ‘if you had a machine in your attic that spit out 6 figures of cash to your bank account every year you’ d probably pay a little bit to insure that. He then said replace that machine with you. I will likely never use it but with me being the primary breadwinner my loss of income would be devastating.
Yes I think you should always keep the Long term disability. Like others have said something like that would be devastating for you family. If you are cash poor and could not be able to squeeze through a 6 month period then you should also consider Short term disability but that one is pretty pricey on the open market. I would contact a insurance broker in your area to find the best deals and to educate yourself further on your options. Stay away from one that will push that whole life crap.
Also if you haven’t thought about it you should get life insurance and enough to replace your income for a long while so your wife and kids are not worrying how they are going to eat. That is if you haven’t yet.
Vince, I carried long term disability insurance for 7 years before my ladder slipped and I crushed my heel. It took 90 days to start receiving benefits but has been paying every month since the injury. With the type of stuff we do, I believe that it would be silly not to have something.
Having said that did you opt for long term or short term disability? I think having the protection is probably one of the most important for us home inspectors. I’ve always known that but I used to have two incomes so it wasn’t as much as a priority to me. Now that I rely solely on what I make I really need to get it. My auto / home insurance from MetLife has it so I plan to call them tomorrow to see what they have to offer.
Vince, A few things as I have read some of the responses and most are very good. One, most disability insurances are for if you get hurt OFF THE JOB ONLY, Make sure that you verify if you get hurt while performing you JOB you will be able to collect. Second, there are time limitations, what I mean is you have a choice to have benefits start after 7 days -14-days 30 etc. the sooner benefits start usually the higher the premium, that also goes with how long you plan to have the benefits pay.
If you find that they do not pay if you are hurt on the job, than as a sole proprietor you can take out workers comp and include yourself.
Contact your met life as they have some good products. other good products are Colonial benefits, Aflac, State farm, etc. Ask a lot of questions and make sure it’s best for you and will actually pay you.
Vince, we have an own occupation policy at 90 days with a 3500 payout. We pay $225 monthly through Ohio National. Its not designed to completely cover your monthly lost income, just a portion of it. The nice thing about the own occupation policy is that they pay until you can do what you were doing before the injury. I hope you buy it and never have to use it buddy.