demann wrote:My wife and I are 52 yrs old . both self employed without much in the way of benefits. 2 kids (17yr , 13 yr old) we have no debts. what type of insurance do we need ????? life ( term vs permanent) ??? disablity?? critical illness???
also are there guidelines on how much insurance to have ??
brucecohen wrote:NOTE: if you pay the premiums yourself, disability payouts are tax-free. So you don't have to insure your full income. Indeed, disability plans typically replace no more than 70% IIRC of earnings.
(ii) you do make a claim and have to pay tax on monthly policy payouts -- it's very likely that you'll be in a low tax bracket then, possibly even non-taxable with all the extra credits for low income, disability etc.
marcharry wrote:I have someone trying to sell me Critical Illness insurance, I am 48 have disability insurance and no debt and money in the bank - there is a lot of mumbo jumbo - but I cannot figure out what the purpose of this insurance actually is. To cover the 90 day elimination period on Disability - not needed; to travel to the US for care? - unlikely - our system works pretty well for critical illnesses - it is the not so critical stuff that seems to suffer; to put a ramp in my home???
If I have a critical illness - chances are that I can spend some of that retirement capital that I wont be around to use between 75 and 85.
PLEASE EXPLAIN WHAT THIS INSURANCE IS ACTUALLY FOR.
Adrian makes a great point downthread as well - not sure why all these years I was paying Dis premiums personally - its that conventional wisdom thing again
marcharry wrote:PLEASE EXPLAIN WHAT THIS INSURANCE IS ACTUALLY FOR.
Most experts we spoke with said you don't need critical-illness insurance. "You wouldn't insure your car piece by piece, so why insure yourself illness by illness?" asks James H. Hunt, a former commissioner of Vermont's state insurance department who's now an independent insurance consultant in Concord, NH.
shmenge wrote:Any comments on the merits of Long Term Care Insurance?
Brix wrote:shmenge wrote:Any comments on the merits of Long Term Care Insurance?
One potential problem (there are no doubt others): the insured may no longer have the mental/moral energy and competence to pursue their claims if/when they become burdensome to the insurer. Some 'long term advocacy insurance' in the form of an assertive and supportive relative or friend likely to be around at the time should be another part of -- and is likely the more crucial part of -- the package.
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