Chavez Posted March 3, 2008 Share Posted March 3, 2008 Anyone have any experience in this field? Had a client/friend drop a question on me and am going through a remedial LTDI cram session right now. Any insight would be appreciated. Just from a quick look, I really need to quiz him on his specific situation (I am unsure whether or not he's an employee or contractor, for example) but it looks like it's a form of insurance with a pretty narrow customer base. Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted March 3, 2008 Share Posted March 3, 2008 Anyone have any experience in this field? Had a client/friend drop a question on me and am going through a remedial LTDI cram session right now. Any insight would be appreciated. Just from a quick look, I really need to quiz him on his specific situation (I am unsure whether or not he's an employee or contractor, for example) but it looks like it's a form of insurance with a pretty narrow customer base. Send me a PM, maybe I can help Quote Link to comment Share on other sites More sharing options...
polksalet Posted March 3, 2008 Share Posted March 3, 2008 If you have a 59 y/o mother in law who is a chain smoker, overweight, and depressive, don't tell them she is depressive. I learned that trick this week. Quote Link to comment Share on other sites More sharing options...
Czarina Posted March 3, 2008 Share Posted March 3, 2008 From my limited experience with it from the perspective of a social worker trying to help families meet their needs...it's terrific but so pricey that very few people actually have it. There's also (IME) a significant lag between the disability and the insurance kicking in -- maybe 6 months? Sometimes it's up to a year, I think. Depends on the policy, etc. I know more than once I had a family on hospice who's hopes were dashed when they realized their LTC insurance wouldn't kick in in time to be of use to them. Quote Link to comment Share on other sites More sharing options...
Jimmy Neutron Posted March 3, 2008 Share Posted March 3, 2008 From my limited experience with it from the perspective of a social worker trying to help families meet their needs...it's terrific but so pricey that very few people actually have it. There's also (IME) a significant lag between the disability and the insurance kicking in -- maybe 6 months? Sometimes it's up to a year, I think. Depends on the policy, etc. I know more than once I had a family on hospice who's hopes were dashed when they realized their LTC insurance wouldn't kick in in time to be of use to them. Not sure if it's standard, but my LTD kicks in after 6 months. STD covers the first 6 months. Quote Link to comment Share on other sites More sharing options...
wiegie Posted March 3, 2008 Share Posted March 3, 2008 All I know about long-term disability insurance is that my insurance agent and I both laughed out loud when he told me how much it would cost me if I wanted to buy it. Quote Link to comment Share on other sites More sharing options...
frenzal rhomb Posted March 3, 2008 Share Posted March 3, 2008 I actually process LTD claims and am currently assisting in drafting our next product line - if youve got details, I may have answers. Quote Link to comment Share on other sites More sharing options...
Yukon Cornelius Posted March 3, 2008 Share Posted March 3, 2008 All I know about long-term disability insurance is that my insurance agent and I both laughed out loud when he told me how much it would cost me if I wanted to buy it. wurd Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted March 3, 2008 Share Posted March 3, 2008 All I know about long-term disability insurance is that my insurance agent and I both laughed out loud when he told me how much it would cost me if I wanted to buy it. Considering you have a greater chance of becoming disabled versus dying early...what is there to laugh about. I really find it is a matter or prioritization. If you love your family enough to provide for them even if you are disabled....then buy it...if not...don't buy it. I usually sell 3 year benefit periods, as most people will qualify for Social Security by the time 3 years is up. Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted March 3, 2008 Share Posted March 3, 2008 Not sure if it's standard, but my LTD kicks in after 6 months. STD covers the first 6 months. Short term is by far the more important of the two coverages...but also the most expensive...since most disability claims are of this variety. Quote Link to comment Share on other sites More sharing options...
polksalet Posted March 3, 2008 Share Posted March 3, 2008 "Considering you have a greater chance of becoming disabled versus dying early...what is there to laugh about. I really find it is a matter or prioritization. If you love your family enough to provide for them even if you are disabled....then buy it...if not...don't buy it." Do you tell this line to your customers? Quote Link to comment Share on other sites More sharing options...
Sturphy Posted March 3, 2008 Share Posted March 3, 2008 "Considering you have a greater chance of becoming disabled versus dying early...what is there to laugh about. I really find it is a matter or prioritization. If you love your family enough to provide for them even if you are disabled....then buy it...if not...don't buy it." Do you tell this line to your customers? Seriously. I think I'd toss you out my front door if you rolled up with a line like that. Quote Link to comment Share on other sites More sharing options...
Jimmy Neutron Posted March 3, 2008 Share Posted March 3, 2008 All I know about long-term disability insurance is that my insurance agent and I both laughed out loud when he told me how much it would cost me if I wanted to buy it. That sucks. My employer picked up the full cost of LTD this year. Quote Link to comment Share on other sites More sharing options...
Double Agent Posted March 3, 2008 Share Posted March 3, 2008 Seriously. I think I'd toss you out my front door if you rolled up with a line like that. Then you must not love your family. Quote Link to comment Share on other sites More sharing options...
frenzal rhomb Posted March 4, 2008 Share Posted March 4, 2008 That sucks. My employer picked up the full cost of LTD this year. Then you likely have group coverage - sounds like Chavez may be taking Individual DI - good to have - if they offer a post tax buyup, I would jump on it. Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted March 4, 2008 Share Posted March 4, 2008 "Considering you have a greater chance of becoming disabled versus dying early...what is there to laugh about. I really find it is a matter or prioritization. If you love your family enough to provide for them even if you are disabled....then buy it...if not...don't buy it." Do you tell this line to your customers? Yes....life insurance, disability insurance, and long term care insurance are bought on emotion mostly. They are bought out of love. Do you own life insurance because it pays off more than you put in making it a good investment.....NO. Get real. Of course I say word for word what I said above to my clients becuase it is true. I do not want to work with people who do not love their families...they make HORRIBLE clients. Quote Link to comment Share on other sites More sharing options...
wiegie Posted March 5, 2008 Share Posted March 5, 2008 (edited) Considering you have a greater chance of becoming disabled versus dying early...what is there to laugh about. I really find it is a matter or prioritization. If you love your family enough to provide for them even if you are disabled....then buy it...if not...don't buy it. what a crock of sh|t I do not want to work with people who do not love their families...they make HORRIBLE clients.I'm guessing you also do not want to work with people who understand cost/benefit analysis. Edited March 5, 2008 by wiegie Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted March 5, 2008 Share Posted March 5, 2008 what a crock of sh|tI'm guessing you also do not want to work with people who understand cost/benefit analysis. Yep...seen many families tore apart by arseholes doing cost benefit analysis. YOu do what you want, but if you can't sleep at night because of some computer model...don't blame me. You can find affordable...way affordable dispay insurance of the 2 to three year variety. Is 60 bucks a month too much to protect your income for your family? Quote Link to comment Share on other sites More sharing options...
BeeR Posted March 5, 2008 Share Posted March 5, 2008 Bing! Quote Link to comment Share on other sites More sharing options...
wiegie Posted March 5, 2008 Share Posted March 5, 2008 Yep...seen many families tore apart by arseholes doing cost benefit analysis. You do what you want, but if you can't sleep at night because of some computer model...don't blame me.I sleep just fine at night (in large part because I know that I have made sensible decisions based upon logic rather than emotion). Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted March 5, 2008 Share Posted March 5, 2008 I sleep just fine at night (in large part because I know that I have made sensible decisions based upon logic rather than emotion). Then do me a favor...logically stay away from the welfare lines when something not in your cost benefit model shows up. And also, I hope you do a bang up job explaining to your wife and kids why the standard of living they are accustomed to is going to drastically change. Again, I am happy for you....I just would NEVER want you as a client. Quote Link to comment Share on other sites More sharing options...
wiegie Posted March 5, 2008 Share Posted March 5, 2008 Then do me a favor...logically stay away from the welfare lines when something not in your cost benefit model shows up. And also, I hope you do a bang up job explaining to your wife and kids why the standard of living they are accustomed to is going to drastically change. Again, I am happy for you....I just would NEVER want you as a client. Trust me, I would NEVER want you as an agent. Go sell fear somewhere else. Quote Link to comment Share on other sites More sharing options...
Double Agent Posted March 5, 2008 Share Posted March 5, 2008 I think some of you are confusing long term disability insurance with long term care. Long term care should never be purchased before age 60-65. The risk is not worth the premium. Long term disability is pretty cheap. I think my LTD is $9 a month. Obviously age has a lot to do with the premium. But if you're under 45, it should be inexpensive. Quote Link to comment Share on other sites More sharing options...
wiegie Posted March 5, 2008 Share Posted March 5, 2008 I think some of you are confusing long term disability insurance with long term care. Long term care should never be purchased before age 60-65. The risk is not worth the premium. Long term disability is pretty cheap. I think my LTD is $9 a month. Obviously age has a lot to do with the premium. But if you're under 45, it should be inexpensive. Perhaps the insurance agent I spoke with is an idiot, because I asked for long-term disability and he quoted me some ridiculous amount that was was in no way worth it. If the rates are as low as you and Shiznit say, then I will definitely look into it (because the expected benefits may then indeed outweigh the expected costs). Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted March 5, 2008 Share Posted March 5, 2008 I think some of you are confusing long term disability insurance with long term care. Long term care should never be purchased before age 60-65. The risk is not worth the premium. Long term disability is pretty cheap. I think my LTD is $9 a month. Obviously age has a lot to do with the premium. But if you're under 45, it should be inexpensive. Pulled that right out of consumer reports....I hope you have good errors and omissions insurance. I can show you three ways from sunday how buying LTC at age 45 will cost less than waiting till 65 if the hypothetical claim happens at 75. Why would you tell someone who is perfectly healthy...or better yet lets use more damning terms. Why on Earth would an FINANCIAL ADVISOR tell someone who is healthy and could afford to buy the coverage to wait till a time in their life when they could conceivable not be able to qualify for coverage? I call this malpractice and bad advice. My opinion is you offer solutions and let the client choose. Then you document. That way, the expectant heirs cannot sue you for ADVISING clients not to purchase something they may actually need....simply because they do not fit into some preconceived notion you have for appropriate buying timing. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.