Long-term Disability Insurance - Educate Me

Get a non-cancellable policy with a true own occupation disability definition.

Non-cancellable policies have fixed rates.

Work with someone who can put it through a few different carriers. Some carriers look at occupation classes differently. Your max benefit is going to be based off of a percentage of income. There are a bunch of different riders that can be put on the policy i.e., inflation, residual disability, future increase options. Just have it all quoted so you can see the difference in cost, and take what's important to you.

quote:

---

Is there a range I should expect for a quality LT disability plan?

---

Really just depends on a bunch of diff things. i.e, occupation, benefit, age, riders, carrier

quote:

---

the premiums go up and then the dividends offset it

---

Sounds like a northwestern quote. Is it?

They quote the shite out of that increasing premium policy as opposed to their level one. They must make more off of it, or there is some incentive to convert it down the line.

Def get some other quotes, and make sure to understand the differences. Like I said, carriers price occupational classes differently. I've found, and this is nothing against your buddy, that with nw all they want to talk about is their company strength and ability to pay dividends. Not the contract itself, which is the most important part. There are some significant differences between contracts regarding things like partial disability, when calculating loss of time and loss of wages.

Own occupation, cost of living increases, and automatic increase options. I was able to increase my benefits after I went on disability. And paying premiums out of pocket with post-tax dollars makes your benefits tax-free.