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  • Insurance rates

    I am 34 years old in good health and currently paying $409 per month for $17,000 in own occ disability insurance through MetLife (with 3% compounded COLA) and $158 per month for $2.1M in 30 year fixed payment term life through mutual of Omaha.   My wife thinks that we pay way too much for insurance but I wanted to bounce it off the forum to see what others are doing.

    Let's set aside the question of how much to buy, which is a more complex question based on family situation, income, and debt.

  • #2
    What is your medical specialty? In which state do you reside? Does your MetLife policy include a 10% AMA discount?

    MetLife typically works very well and United of Omaha is definitely one of the lower priced level premium term life carriers. They also use your actual age and not your "nearest" age, which can also provide a premium savings.

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    • #3
      I pay $0.

      Until about a year ago, I was paying about $300 a month for $10,000 a month own-occ disability from Metlife and $27 a month for a 10-year $1,000,000 term life policy.

      Financial Independence allowed me to feel comfortable dropping them both, saving me $4000 a year.  I suppose I'm glad it was in place when I needed it, but I was happy to stop tossing $11 out the window every day.

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      • #4
        I recall WCI saying that monthly premium should be 3-5% of monthly benefit for DI.  This seems like where my policy is and PhysicianOnFire's.  anyone else have a lower or higher cost ratio?

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        • #5
          Assuming that you are not self employed or have employer provided or sponsored group LTD (where limits can be more generous). To have a $17,000 monthly benefit with MetLife, your annual earned income would need to be at least $475,000. If your annual premium is $4,908, you are at about 1%. So, you are very much below the 3-5% of your annual income, which is what he most likely meant.

          Many of your colleagues will be higher than that based upon their specialty, state of residence, age or they are female and unisex rates were not available to them.

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