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Which riders do I need for disability insurance?

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  • Avatar DDStigers 
    Participant
    Status: Dentist
    Posts: 12
    Joined: 05/11/2019

    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.

     

    #219987 Reply
    Avatar FamilyFirst 
    Participant
    Status: Student
    Posts: 20
    Joined: 05/19/2017

    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.

    https://www.whitecoatinvestor.com/disability-insurance-part-4-the-riders/

    #219998 Reply
    Liked by ENT Doc
    Scott at MD Financial Services Scott at MD Financial Services 
    Participant
    Status: Website Sponsor, Insurance Agent, Small Business Owner
    Posts: 411
    Joined: 01/14/2016

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

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

    #220178 Reply
    Avatar Anne 
    Participant
    Status: Physician
    Posts: 938
    Joined: 11/07/2017

    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?

    #220179 Reply
    Scott at MD Financial Services Scott at MD Financial Services 
    Participant
    Status: Website Sponsor, Insurance Agent, Small Business Owner
    Posts: 411
    Joined: 01/14/2016

    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.

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

    #220181 Reply
    Liked by Anne
    Avatar DDStigers 
    Participant
    Status: Dentist
    Posts: 12
    Joined: 05/11/2019

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

    #220185 Reply
    Scott at MD Financial Services Scott at MD Financial Services 
    Participant
    Status: Website Sponsor, Insurance Agent, Small Business Owner
    Posts: 411
    Joined: 01/14/2016

    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.

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

    #220186 Reply

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