Disability Insurance
Dave Ramsey's Recommendations:
By the time you reach age 30, you’re more likely to be disabled than to die before you reach age 60. That is why Disability Insurance is mandatory. Here are Dave's recommendations:
- only buy Long-Term Disability Insurance
- carry as much as you can get (typically 60-70% of your income) & carry it your entire life
- if possible, buy through work for the cheapest option
- look for "own-occ", which means your own occupation is covered if you become unable to do your job (usually has a 2 year limit)
- don’t buy disability insurance pre-tax
- compare policies with different elimination periods (between 30-180 days)
- look for non-cancellable policies that cannot drop you if your health changes