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Which riders do I need for disability insurance?

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  • Which riders do I need for disability insurance?

    I just graduated dental school and am working on buying a disability policy.  I have been quoted by both Northwestern mutual and Ameritas ($236 per month).  The Ameritas quote has some extra riders that I'm not sure I need and would help decrease my premium.  The riders on the ameritas policy are:

    1. Enhanced residual disability

    2. Cost of living adjustment (3%)

    3. Future increase option

    4. catastrophic disability

    5. Student loan repayment

    6. Automatic increase rider (no charge)


    Which of these, if any, would be okay to drop from my policy.


  • #2
    I don't know your entire situation and choosing disability insurance and riders is pretty situational I think. I found this article that might help you though.


    • #3
      I am not a fan of the COLA or Catastrophic for the vast majority of my clients.


      • #4
        Scott, I remember you telling me the same years ago when I bought my policy and I remember agreeing with your reasoning but now I can't remember what that reasoning was. Can you please expand on why you're not a fan of the COLA and catastrophic riders?


        • #5
          Catastrophic take 2 of the activity of daily living to trigger benefits so it is rare to collect benefits unless you are in a nursing home.

          COLA takes about 12-14 years On Claim based on the last 20 or so years of CPI-U before cumulative benefits received are the same.


          • #6
            Is student loan repayment a good idea? It's $17 extra dollars and would cover $1800 payments.


            • #7
              Seems a bit expensive since most are $8–10 per month for $2k but it does depend on state, gender, med specialty, and age. You also need to make sure your getting max discounts being applied.