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  • lifetime benefit disability insurance

    My wife is in a residency and is looking to get disability insurance before she's finished.  I'm trying to convince her that the 20-30% (according to the agent) more she'll pay for a lifetime benefit vs ending at 65 or 67 isn't worth it, but she's worried about what would happen if she became disabled before we're able to save a significant amount.  I've seen it come up in the comments sections of a couple blog posts, but haven't seen much focus on the subject.

    My DI policy benefit ends at 65, and I've always thought of the permanent benefit rider as similar conceptually to whole life insurance.

    I'm interested in hearing some arguments that could be more convincing for my wife.  If I'm wrong, I'm open to hearing that too (I guess  )

  • #2
    DI is insurance against loss of earnings, until you are financially independent.   When will you be financially independent?  age 55, age 65?

    Another view is that if you could live on one income,  you have each other's income to insure each other.   Pay insurance only for what you can not self-insure.

    Comment


    • #3
      Only two carriers offer lifetime benefits - Berkshire (Guardian) and MetLife. The maximum (total) monthly benefit is $10,000 whether you purchase your coverage from one or a combination of the two companies, not including COLA increases.

      Over the last few years, the cost of the lifetime benefits has increased substantially. As a result, the percentage of insureds that purchase them, short of those exercising increase options, is extremely low.

      Your wife would probably be better served if she purchases a policy with a unisex rate and discount with benefits payable to age 67 or age 70.

      Keep in mind that some carriers also make other options available to provide additional benefits in the event of a total disability at a young age or in the event of a catastrophic disability.

      Comment


      • #4
        Only two carriers offer lifetime benefits - Berkshire (Guardian) and MetLife. The maximum (total) monthly benefit is $10,000 whether you purchase your coverage from one or a combination of the two companies, not including COLA increases.

        Over the last few years, the cost of the lifetime benefits has increased substantially. As a result, the percentage of insureds that purchase them, short of those exercising increase options, is extremely low.

        Your wife would probably be better served if she purchases a policy with a unisex rate and discount with benefits payable to age 67 or age 70.

        Keep in mind that some carriers also make other options available to provide additional benefits in the event of a total disability at a young age or in the event of a catastrophic disability.

        Comment


        • #5
          Only two carriers offer lifetime benefits - Berkshire (Guardian) and MetLife. The maximum (total) monthly benefit is $10,000 whether you purchase your coverage from one or a combination of the two companies, not including COLA increases.

          The lifetime benefit amount is determined at the end of your benefit period by your age when total disability began. For disabilities that began prior to age 46, the lifetime benefit is equal to 100% of your policy’s monthly benefit. For total disabilities that began after age 46, the lifetime indemnity amount is reduced by 5% for each year. For example, a disability that began at age 50 would pay 100% of the monthly benefit and then 75% (5 years past age 45 at a 5% per year reduction) for the rest of the insured's life.

          Over the last several years, the cost of the lifetime benefits has increased substantially. As a result, the percentage of insureds that purchase them, short of those exercising increase options, is extremely low.

          Your wife would probably be better served if she purchases a policy with a unisex rate and discount with benefits payable to age 67 or age 70. Since she is a resident, depending upon her hospital affiliation, this should be available to her.

          Keep in mind that some carriers also make other options available to provide additional benefits in the event of a total disability at a young age or in the event of a catastrophic disability.

          Comment


          • #6
            Only two carriers offer lifetime benefits - Berkshire (Guardian) and MetLife. The maximum (total) monthly benefit is $10,000 whether you purchase your coverage from one or a combination of the two companies, not including COLA increases.

            The lifetime indemnity amount is determined at the end of your benefit period by your age when the continuous total disability began. For disabilities that began prior to age 46, the lifetime indemnity is equal to 100% of your policy’s monthly benefit. For continuous total disabilities that began after age 46, the lifetime indemnity amount is reduced (or graded) by 5% for each year. For example, if one's disability began at age 50 (5 years past age 45 with a 5% reduction per year), the insured would receive 100% of their monthly benefit until the end of their benefit period (typically age 65) and then 75% for the rest of their life.

            While lifetime benefits in the past did not differ much in term of premium rates, over the last several years, the premium rates for lifetime benefits have increased substantially. As a result, short of those exercising increase options on existing policies, very few insureds will purchase policies that include a lifetime benefit period.

            You wife might be best served looking for a policy with a unisex rate and permanent premium discount with benefits payable to age 67 or 70. The combination of the unisex rates and discount will typically produce a savings of 40-50% off of the normal female rates.

             

             

             

            Comment


            • #7
              Only two carriers offer lifetime benefits - Berkshire (Guardian) and MetLife. The maximum (total) monthly benefit is $10,000 whether you purchase your coverage from one or a combination of the two companies, not including COLA increases.

              The lifetime indemnity amount is determined at the end of your benefit period by your age when the continuous total disability began. For disabilities that began prior to age 46, the lifetime indemnity is equal to 100% of your policy’s monthly benefit. For continuous total disabilities that began after age 46, the lifetime indemnity amount is reduced (or graded) by 5% for each year. For example, if one's disability began at age 50 (5 years past age 45 with a 5% reduction per year), the insured would receive 100% of their monthly benefit until the end of their benefit period (typically age 65) and then 75% for the rest of their life.

              While lifetime benefits in the past did not differ much in term of premium rates, over the last several years, the premium rates for lifetime benefits have increased substantially. As a result, short of those exercising increase options on existing policies, very few insureds will purchase policies that include a lifetime benefit period.

               

              Comment


              • #8
                Tried to post but it didn't work. Fortunately I'm aware of posting problems people have been having and I copy-pasted my post before submitting. See attached .txt for reply.

                Comment


                • #9
                  Only two carriers offer lifetime benefits - Berkshire and MetLife. The maximum (total) monthly benefit is $10,000 if you have one or a combination of the two companies, not including COLA increases.

                  Over the last few years, the cost of the lifetime benefits has increased substantially. As a result, the percentage of physicians that purchase them (short of those exercising increase options) is extremely low.

                  Yiur wife would be best served if she purchases a policy with a unisex rate and discount that is payable to age 67 or age 70.

                  Some carriers also make other options available to provide additional benefits in the event of a total disability at a young age.

                  Comment


                  • #10
                    Only two carriers offer lifetime benefits - Berkshire (Guardian) and MetLife. The maximum (total) monthly benefit is $10,000. If you purchase coverage from Berkshire, MetLife or a combination of the two, the maximum monthly benefit, prior to any COLA increases, is $10,000.

                    Over the last few years, the cost of lifetime benefit has increased significantly. As a result, short of those exercising increase options on existing policies, very few insureds will purchase lifetime benefits.

                    You wife would probably best be served purchasing a policy with unisex rates and a discount with benefits payable to age 67 or 70.

                    Some carriers also make riders available to provide additional benefits in the event that an insured is disabled young or is catastrophically disabled.

                    Hopet this helps.

                    Comment


                    • #11
                      Only two carriers offer lifetime benefits - Berkshire (Guardian) and MetLife. The maximum (total) monthly benefit is $10,000 whether she purchases Berkshire MetLife or a combination of the two companies, not including COLA increases.

                      Over the last few years, the cost of the lifetime benefits has increased substantially. As a result, the percentage of insureds that purchase them, short of those exercising increase options, is extremely low.

                      Your wife would probably be best served if she purchases a policy with a unisex rate and discount with benefits payable to age 67 or age 70.

                      Some carriers also make other options available to provide additional benefits in the event of a total disability at a young age or in the event of a catastrophic disability.

                      Comment


                      • #12
                        Only two carriers offer lifetime benefits - Berkshire (Guardian) and MetLife. The maximum (total) monthly benefit is $10,000 whether you purchase your coverage from one or a combination of the two companies, not including COLA increases.

                        Over the last few years, the cost of the lifetime benefits has increased substantially. As a result, the percentage of insureds that purchase them, short of those exercising increase options, is extremely low.

                        Your wife would probably be better served if she purchases a policy with a unisex rate and discount with benefits payable to age 67 or age 70.

                        Keep in mind that some carriers also make other options available to provide additional benefits in the event of a total disability at a young age or in the event of a catastrophic disability.

                        Comment


                        • #13
                          Only two carriers offer lifetime benefits - Berkshire (Guardian) and MetLife. The maximum (total) monthly benefit is $10,000 whether you purchase your coverage from one or a combination of the two companies, not including COLA increases.

                          Over the last few years, the cost of the lifetime benefits has increased substantially. As a result, the percentage of insureds that purchase them, short of those exercising increase options, is extremely low.

                          Your wife would probably be better served if she purchases a policy with a unisex rate and discount with benefits payable to age 67 or age 70.

                          Keep in mind that some carriers also make other options available to provide additional benefits in the event of a total disability at a young age or in the event of a catastrophic disability.

                          Comment


                          • #14
                            Only two carriers offer lifetime benefits - Berkshire and MetLife. The maximum (total) monthly benefit is $10,000 if you have one or a combination of the two companies, not including COLA increases.

                            In order to receive 100% of the monthly benefit for life, you must be disabled on or before age 45. Otherwise, the lifetime (post age 65) benefits are reduced and depends upon when disability begins.

                            Over the last few years, the cost of the lifetime benefits has increased substantially. As a result, the percentage of physicians that purchase them (short of those exercising increase options) is extremely low.

                            Your wife would be best served if she purchases a policy with a unisex rate and discount that is payable to age 67 or age 70.

                            Some carriers also make other options available to provide additional benefits in the event of a total disability at a young age.

                            Comment


                            • #15
                              Only two disability insurance carriers offer lifetime benefits - Berkshire (Guardian) and MetLife. The maximum (total) monthly benefit is $10,000 whether you purchase your coverage from one or a combination of the two companies, not including COLA increases.

                              Over the last few years, the cost of the lifetime benefits has increased substantially. As a result, the percentage of insureds that purchase them, short of those exercising increase options, is extremely low.

                              Your wife would probably be better served if she purchases a policy with a unisex rate and discount with benefits payable to age 67 or age 70.

                              Keep in mind that some carriers also make other options available to provide additional benefits in the event of a total disability at a young age or in the event of a catastrophic disability.

                              Comment

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