Hello all, I have a question regarding disability insurance. I am in the process of applying with Guardian for own occupation disability insurance. I am an internist at a large hospital. My hospital offers disability insurance and this is what I have. I have a short term which would start paying out after being 5 days off work and will cover up to 90 days with 60% of monthly income with a 5k max. I also have a long term which would start paying out 90 days after i'm out with 60% up to 17500. Now I spoke with guardian and they sent me an illustration of a disability insurance.
here is what they said
19k in current monthly earning
11750 will be from my hospital
4000 dollars is what the proposed DI benefit. The total annual benefit would be 47280.
4000 dollars in proposed catastrophic DI.
The base policy would be 4000 dollars a month, true own occupation. I have a future increase option of 8000 dollars a month, residual disability benefit rider, cost of liver adj of 3%, catastrophic benefit of 4000 a month, and an automatic benefit enhancement rider for a total premium of 2000 dollars a year
Now here are my questions
1. I would essentially be paying 2000 a year to cover 4000 dollars a month. This is what Guardian would provide me. The rest I would get from my employer. I have a very modest lifestyle and dont see why I would nee an addition 4 grand a month. Am I missing something here? My employer would probably give me 8K following taxes a month, this is plenty to live off.
2. Now another consideration is that I may not stay with my current employer. If I leave I obviously will not get the proposed disability benefit from my current employer. I dont know what my future hospitals DI plan is. If I were to sign with guardian and the hospital does not have a good disability policy would I be stuck with only 4K a month beneft from guardian? Could i get more from Guardian?
This is all very confusing. Term life was so much easier. I just dont see the need for DI at this time with my current employer. But I must be missing something but i'm not sure what? Any ideas?
here is what they said
19k in current monthly earning
11750 will be from my hospital
4000 dollars is what the proposed DI benefit. The total annual benefit would be 47280.
4000 dollars in proposed catastrophic DI.
The base policy would be 4000 dollars a month, true own occupation. I have a future increase option of 8000 dollars a month, residual disability benefit rider, cost of liver adj of 3%, catastrophic benefit of 4000 a month, and an automatic benefit enhancement rider for a total premium of 2000 dollars a year
Now here are my questions
1. I would essentially be paying 2000 a year to cover 4000 dollars a month. This is what Guardian would provide me. The rest I would get from my employer. I have a very modest lifestyle and dont see why I would nee an addition 4 grand a month. Am I missing something here? My employer would probably give me 8K following taxes a month, this is plenty to live off.
2. Now another consideration is that I may not stay with my current employer. If I leave I obviously will not get the proposed disability benefit from my current employer. I dont know what my future hospitals DI plan is. If I were to sign with guardian and the hospital does not have a good disability policy would I be stuck with only 4K a month beneft from guardian? Could i get more from Guardian?
This is all very confusing. Term life was so much easier. I just dont see the need for DI at this time with my current employer. But I must be missing something but i'm not sure what? Any ideas?
Comment