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non high-earner spousal disability insurance

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  • non high-earner spousal disability insurance

    I am a physician in my mid-40s with an adequate disability insurance. My wife is a part-time teacher also in her mid-40s who makes ~$40k/year. She also has a disability policy with a monthly benefit of ~$1000 and an annual premium of ~$400. Worth it to keep my wife's DI policy? If so, what about taking advantage of the FIB (future increase benefit) on her policy? Any insights would be appreciated.

  • #2
    Originally posted by dsog View Post
    I am a physician in my mid-40s with an adequate disability insurance. My wife is a part-time teacher also in her mid-40s who makes ~$40k/year. She also has a disability policy with a monthly benefit of ~$1000 and an annual premium of ~$400. Worth it to keep my wife's DI policy? If so, what about taking advantage of the FIB (future increase benefit) on her policy? Any insights would be appreciated.
    You didnt indicate how much you make, but I am not sure it matters in this case. you're paying $400/yr for $12000/year benefit when you are likely making 300K+. to me, this is a no brainer. drop her policy. I am in a similar situation to you and have done the same (albeit we are a few years younger)

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    • #3
      I try to self insure everything I can. I had a disability policy thru my employer, but recently became a SAHD and never really considered getting a disability policy.
      if it offers you (or more importantly, your wife) a great deal of peace of mind to have it in your pocket, $400 per year isn't too big a price to pay.

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      • #4
        How much impact would the $12,000 to replace loss of their income have on your family? If you really need that money, then insure it. Shop for the best policy and consider whether you need more than 12k.

        Of course, if you would need the 12k, the you should buy as much disability as you can get for yourself.

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        • #5
          If you are on the fence about keeping it then I would suggest you also look at the policy on how to trim the cost. Can you push out the elimination period? Are there riders on it you can drop? Often times you can do those things and take 25% off the cost.
          Scott Nelson-Archer, CLU, ChFC
          281-770-8080 Direct / [email protected]

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          • #6
            Thanks for the input from everyone - very helpful perspectives.

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