Agents. What Was that Moment It Hit You?

[Gulfman]

Best friend kept talking about getting Life and DI coverage "sometime when the time was right". Was married at the time and has 1 kid. Obviously I always told him to just "let me know". I even brought it up casually once or twice after some time had gone by, but never pushed.

Early that December, he randomly mentioned he wants to go ahead with the coverage. BUT he wanted to wait until after Christmas since he was tight on cash.

Two days into the new year he had a seizure. Stage 3 brain cancer.
He went from having 2 jobs, to having no jobs and no income.

He now finally would qualify for a $50k GI policy. Which is absolutely nothing when you have a child.
He could have locked-in at least $2k per month in DI coverage... now he lives off of $600/m in SS benefits.

This stuff is important. It literally changes peoples lives like nothing else in that moment ever could. Its not just money, its the ability to continue enjoying life.

Hi sc,

Now, that DI policy would only cover for a certain period of time...CORRECT? (iow, its not like SS disability)?

 

[VolAgent]

Hi sc,

Now, that DI policy would only cover for a certain period of time...CORRECT? (iow, its not like SS disability)?

Knowing Scagent83, it was almost certainly to age 65 or 67.

I have such a policy myself. Much more likely to be disabled than to die during your working years.

 

[Gulfman]

Knowing Scagent83, it was almost certainly to age 65 or 67.

I have such a policy myself. Much more likely to be disabled than to die during your working years.

Thanks Vol.
Are you saying there r DI plans that pay more than 2yrs out?

 

[VolAgent]

Thanks Vol.
Are you saying there r DI plans that pay more than 2yrs out?

Definitely. It does depend upon occupation as some carriers do limit the length for more blue-collar occupations.

 

[Gulfman]

Definitely. It does depend upon occupation as some carriers do limit the length for more blue-collar occupations.

Thanks man.

Im thinking contractors, surgeons, ppl who work w their hands will be limited. Maybe??

 

[scagnt83]

Hi sc,

Now, that DI policy would only cover for a certain period of time...CORRECT? (iow, its not like SS disability)?

Vol is correct. Long Term DI policies are usually a minimum of 2 years. Most decent DI policies give you a choice of 2y/5y/10y/T65/T67.

Not all occupations qualify for a benefit To Age 65 or 67. But most occupations will get at least a 5 to 10 year benefit.

---------------------------------


Who knows what benefit period he would have ended up with. Knowing his income situation back then, I probably would have been happy with a 10 year policy. But of course would have pushed for T65 if it was an option.


Even if it was a 2y or 5y policy. Something is better than nothing.
Those first 2 years were by far the worst years of his life... most people only think about the illness and "was he able to get care". People dont think about what a sudden loss of income (combined with devastating medical news) does to the mental state of a hard working person. Or to a marriage and a family.

I think that even 2 years of continued income would have been life changing in relation to his mental state at the time. I wont get into details of it all, but your imagination probably isnt far off. The old saying really is true, something is always better than nothing.

----------

Thanks man.

Im thinking contractors, surgeons, ppl who work w their hands will be limited. Maybe??

It all depends on job duties and working environment. A surgeon is in a much safer working environment than a contractor, but not as safe as a general practice doctor. There are various occupation ratings too, so the surgeon will likely be in a different occ class (different premium) than the general practitioner. Generally speaking, most inside jobs (excluding an industrial environment) will qualify for a T65 benefit. Or at least a 10 year benefit.

 

[VolAgent]

Thanks man.

Im thinking contractors, surgeons, ppl who work w their hands will be limited. Maybe??

While DI is never easy, the options are vastly better for a surgeon than a contractor. The more white-collar the occupation, the easier the coverage is to get and the better the terms. Carriers love surgeons, big premiums because of big compensation.

Contractors are completely different. Of course they should be buying, but most think they are invincible until something happens. Then it becomes extremely difficult to get coverage. I'm assuming they were able to return to work at all.

While doctors have had it beat into their heads to get DI from medical school, residency, fellowship, etc. It is just a matter of getting them early or adding on more coverage later on.