I get 60% disability through work for free. It is a group policy, so I am guessing it is not own occupation (if I have the lingo right). I don't do procedures, so I don't know if I need it ( that is my first question). I believe the payout is pretax on that.
My second main question, they are offering a buy up, an extra 7% coverage for $32/pay period (or $37 with COLA) or 15% coverage for $60/pay period or 69 with cola. In annual terms, the 7% one costs $844 and would pay out $18,500 (4.5%). The 15% one costs $1570 for $37,000 a year. This upgrade is portable and post tax cost and therefore post-tax benefits. I'm 44 and in pretty good health, I'm the breadwinner with 60-65%, we are 20-25% of the way to our "number" for FI. Our house is maybe 40% paid off, but we live in a very HCOL area so we still have a lot left. This is nice because it doesn't require the hassle of a physical and all, and it has a deadline, so I have to decide! Should I buy it? Could we survive on 60% of my salary, likely but without saving as much for retirement, or we might have to let our nanny go, or things like that.
Third question, should I buy independent coverage for the first 60% or am I okay since I don't do procedures? (Can I even by independent coverage for the first 60%?...oops that's four questions)
Thanks, I feel totally lost in disability coverage
My second main question, they are offering a buy up, an extra 7% coverage for $32/pay period (or $37 with COLA) or 15% coverage for $60/pay period or 69 with cola. In annual terms, the 7% one costs $844 and would pay out $18,500 (4.5%). The 15% one costs $1570 for $37,000 a year. This upgrade is portable and post tax cost and therefore post-tax benefits. I'm 44 and in pretty good health, I'm the breadwinner with 60-65%, we are 20-25% of the way to our "number" for FI. Our house is maybe 40% paid off, but we live in a very HCOL area so we still have a lot left. This is nice because it doesn't require the hassle of a physical and all, and it has a deadline, so I have to decide! Should I buy it? Could we survive on 60% of my salary, likely but without saving as much for retirement, or we might have to let our nanny go, or things like that.
Third question, should I buy independent coverage for the first 60% or am I okay since I don't do procedures? (Can I even by independent coverage for the first 60%?...oops that's four questions)
Thanks, I feel totally lost in disability coverage
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