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Disability insurance as young attendings ? need COLA or future purchase rider?

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  • Avatar racelari 
    Participant
    Status: Physician
    Posts: 18
    Joined: 03/10/2019

    Hi guys, shopping for disability insurance and just spoke with Bob Bhayani (who is awesome by the way!) and just wanted to clarify his recommendations and see what you guys thought.   My wife and I are both docs, 38 and 37 years old respectively, replacing our old Northwestern Mutual disability policies with True Occ policies.  I have two questions regarding riders:

    1. both our employers have group policies so the amount of individual disability benefit we can now purchase is less than we need.  Bob recommended doing a future purchase option rider for both our policies in we leave our employers to compensate for this, and then we can buy more to cover our needs.  Does this sound reasonable?

    2.  He did not recommend doing COLA riders given we both are doctors and have each others income to sort of shield from inflation.  Does this sound reasonable?

     

    thanks guys!

    #214189 Reply
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 2851
    Joined: 09/18/2018
    #214190 Reply
    Liked by jfoxcpacfp
    Scott at MD Financial Services Scott at MD Financial Services 
    Participant
    Status: Website Sponsor, Insurance Agent, Small Business Owner
    Posts: 429
    Joined: 01/14/2016

    Hi guys, shopping for disability insurance and just spoke with Bob Bhayani (who is awesome by the way!) and just wanted to clarify his recommendations and see what you guys thought.   My wife and I are both docs, 38 and 37 years old respectively, replacing our old Northwestern Mutual disability policies with True Occ policies.  I have two questions regarding riders:

    1. both our employers have group policies so the amount of individual disability benefit we can now purchase is less than we need.  Bob recommended doing a future purchase option rider for both our policies in we leave our employers to compensate for this, and then we can buy more to cover our needs.  Does this sound reasonable?

    2.  He did not recommend doing COLA riders given we both are doctors and have each others income to sort of shield from inflation.  Does this sound reasonable?

     

    thanks guys!

    Click to expand…

    If you have the ability to buy more coverage than you are currently looking at then I would just buy a bit more coverage (use the premium you were thinking of spending on the COLA feature).  For the math to work on buying COLA vs. just buying more benefit with those same premium dollars you were going to by COLA with is about 12-14 years ON Claim, personally not a fan of COLA.

    S. Scott Nelson-Archer, CLU, ChFC with M. D. Financial Services, Inc.
    Direct Phone 713-966-3932, Email [email protected]

    #214219 Reply
    Liked by Tim

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