Getting Crushed by all these insurance bills
Started by gasresident1
I joined the Army and skipped disability insurance. I'll just die instead.
You’re doing something wrong. Health, malpractice, disability, car, life, home and umbrella insurance shouldn’t run you more than $4k per month total… and most of it is paid with pre-tax dollars. So you either need a better paying job or cheaper insurance.
Do you have kids? They are the greatest financial black holes.
Do you have kids? They are the greatest financial black holes.
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Strictly speaking, the military provides disability insurance. They just call it medical retirement, and maybe it'll be good for a poverty-level subsistence if you get injured, because it'll be a fraction of base pay without regard for the rest of your military income (housing, med special pays, etc).
Seriously ... you might want to get an own occ policy while you're still on active duty. Very few military physicians do, but I've never met one who did and regretted it.
I got a policy through Mass Mutual 8 or 9 years ago when I was on active duty, with a future insurability rider. I was healthy and it has no exclusions. It wasn't a large policy and the premium was only a few thousand dollars per year. I left the Navy last year, joined a private group, and went through the underwriting process with our group's disability carrier. They carved out a significant exception to coverage, because I saw an orthopod a few years ago for wrist pain, that included a normal MRI, and that completely resolved a year earlier. I'm covered by the group policy, but I was glad I could exercise the future insurability option on my individual policy.
I know it's a hard sell to toss away a few thousand $ more every year for insurance, especially on a military paycheck. But disability is more likely than dying, and nobody balks at buying life insurance.
Term life insurance 1-2 million for 20-30 years at age 30-40 is still pretty cheap. $100/month. Don’t do whole life. People want to take care of their families in case if they did. But if my family can’t take care of themselves with a 1-2 million dollar payout from my death. They got bigger issues. Especially since college is paid for. The house is worth more than 2 plus million with mortgage that’s can be paid off anytime.
Disability is over sold by insurance brokers. Trust me. The guys selling insurance in my muti million dollar neighborhood all retired by age 44/46 selling insurance policies to “rich” doctors and lawyers. You don’t need the 15k post tax occupation specific policy. Settle for 6-8k/month policy if you want to get one.
Remember social security disability and death benefits. The govt will give up to $2000/per kid per month till they turn 18
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www.ssa.gov
Insurance brokers are flabbergasted when I tell them this stuff. They know these laws. They WANT TO OVERSELL you police’s so THEY CAN MAKE MORE MONEY.
Malpractice is becoming less of an issue as we all become employed. I used to write 25k checks for my malpractice policy (occurrence)
Yes life is expensive. Just be happy we make a lot of money relative to the general population.
Kids (and non working (husbands) wives) will be the most expensive things In your life. It’s hard. Even if both parents working. Child care becomes expensive with day care or Nannies.
Disability is over sold by insurance brokers. Trust me. The guys selling insurance in my muti million dollar neighborhood all retired by age 44/46 selling insurance policies to “rich” doctors and lawyers. You don’t need the 15k post tax occupation specific policy. Settle for 6-8k/month policy if you want to get one.
Remember social security disability and death benefits. The govt will give up to $2000/per kid per month till they turn 18
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- Surviving spouse, any age, caring for a child under age 16 — 75%.
- A child under age 18 (age 19 if still in elementary or secondary school) or who has a disability — 75%.”
Survivor benefits
Find out what Social Security Survivor benefits are, who can get them, and how to apply.
Insurance brokers are flabbergasted when I tell them this stuff. They know these laws. They WANT TO OVERSELL you police’s so THEY CAN MAKE MORE MONEY.
Malpractice is becoming less of an issue as we all become employed. I used to write 25k checks for my malpractice policy (occurrence)
Yes life is expensive. Just be happy we make a lot of money relative to the general population.
Kids (and non working (husbands) wives) will be the most expensive things In your life. It’s hard. Even if both parents working. Child care becomes expensive with day care or Nannies.
Agree that disability insurance can be oversold - the entire insurance industry exists to extract money from people who can't self-insure rare but catastrophic events. And they make a good living doing it.
But if you lose your fingers in a freak blender accident, social security isn't going to be remotely enough to maintain the life you were living. Everyone needs at least some coverage from an own occ policy. Even if there's no spouse, no kids, no mortgage. $500/month in premiums is nothing.
But if you lose your fingers in a freak blender accident, social security isn't going to be remotely enough to maintain the life you were living. Everyone needs at least some coverage from an own occ policy. Even if there's no spouse, no kids, no mortgage. $500/month in premiums is nothing.
Going to play devils advocate here
Many lawyers make 200-500k yet none I know carry disability insurance.
Why would a non procedurist need to carry disability insurance like psychiatry or pmr? That’s when u know it’s a scam
You can still do consulting work even as anesthesiologists
What about mechanics or hvac guys or plumbers. . They pretty good money these days. 60k on low end to 250k on high end. Why aren’t insurance brokers targeting these crowds?
Now saying all that for. If you have house paid off. Kids in college. A 10-15 million dollar war chest by age 50. I really feel no need to continue disability policy.
Because disability insurance covers things like brain damage?
Your last paragraph is correct, which is why most people in medicine that i'm aware of stop paying for disability policies somewhere in their 50s.
Why don’t lawyers carry it?
No clue, have you ever asked one?
I bet they like most of the public underestimate how often people become disabled.
Because they can do their jobs sitting in a chair and never moving? Because they can lose a hand and keep working as usual?
I know someone who had a stroke shortly after becoming an attending and I got disability right away. I have a 10k policy which I think should be sufficient. I just don't want to burden my family if something happens to me. No life insurance though
Yeah they are expensive. I probably pay around $3000 for all of it a month (half is our mediocre group health insurance). But I am a younger attending, don’t own a house yet, have limited retirement savings, have a wife with limited income earning potential, and a young child. Hence, the need for higher life insurance and disability insurance (have a $20K policy). But it’s good piece of mind.
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But if they aneurysm and can’t talk or write ?
That’s a major problem.
That’s what I just asked 5 of my attorney friends. None of them carry it. They don’t know any of their friends who carry them either. We are talking corporate attorneys making 300k and up.
Look. I’m not advocating don’t get disability policy. That’s a personal decision. I carried my own for 9 years. Just a waste of money as you get older.
They jack up a lot of rates after 9/11. I’m sure a lot of rates getting jacked up after Covid as well.
Insurance is all about risks. But people in high income occupations don’t carry disability policies and they could get seriously injured on the job as well.
I just texted 5 of my lawyer friends. None of them carry it.
Do their firms buy them a policy?
Did you ask them Why not?
I just wanna take a minute and admire how huge your network of friends is. And also knowing how much they all make
Discussing salary’s and income and net worth isn’t as taboo as one thinks. I’m probably on the middle lower 1/3 end of the salary scale/net worth in neighborhood. But we know probably 1/5 of everyone in the neighborhood for 10 plus years. It’s very wealthy but normal people. I’d be walking the dog and they invite me over for drinks.
It’s kinda of funny when hearing’s one’s net worth is over 10 million and they think they are middle class. Saving 300-400k a year for 20 plus years. Obviously these people don’t travel cheap. They got multiple homes.
But seeing another one of my daughters friends take off on private jet to Paris for 24 hours of Le Mans race this past weekend. Just different subset of people we live around. Now that dude worth a lot more than 10 million. But they are like normal families. Sleepovers, football tailgate etc, bbq, golf, tennis.
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Most people don’t ask or tell others how muxh money they make.
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I don’t think it is this easy. Especially if you have a preexisting condition.
Probably most people don’t disclose but I have easy going social personality.
We aren’t reclusive people. We are out and about.
Some people willingly disclosed it also. Like my pool people net profits after expenses over 500k a year!! And they done by 12pm each day. They literally declined new business customers cause they didn’t want to make any more money.
It’s crazy what different industries can make. Most mid to higher executives their real money is in bonus. They disclose that as well to me.
Man I'm a little scared to check my disability rates. I just turned 40 and I'm overweight.
I would have said "so trim a few pounds" but when you apply they usually ask you if you've gained or lost more than 10lbs in the last year (or something along those lines).
So I just got to lose 40lbs in 2 months and then maintain for a year and then I can get disability insurance!
Insurance isn’t supposed to financially cripple you until you actually need to use it.
How much do you really need to live on? Think about it. Ok. Housing is between $2000-4000 a month in the vast majority of America. We all eat out too much to be honest. We can cut that down. Car payments? Most cars these days are designed to run easy 200k miles.
A family of 4 can survive decently on 8k a month or less and still be comfortable. That’s post tax. Meaning making around 130k.
Insurance is over sold. Yes it’s the old saying you, insurance is waste of money until you need it. But it’s also a waste of money to over buy a policy you don’t need as well.
Look directly into the eyes of the insurance broker. And though most like to work virtually these days. Ask them point blank how much you need. Watch their eyes. And eye brows. You will see they are snakes. Sales man. Out to make a sale. That’s just the industry. Can’t blame them for making the sales pitch. “The miracle of renewals” is what one of our retired insurance friends always quote. They retired at age 44. Other one age 46.
A family of 4 can survive decently on 8k a month or less and still be comfortable. That’s post tax. Meaning making around 130k.
Insurance is over sold. Yes it’s the old saying you, insurance is waste of money until you need it. But it’s also a waste of money to over buy a policy you don’t need as well.
Look directly into the eyes of the insurance broker. And though most like to work virtually these days. Ask them point blank how much you need. Watch their eyes. And eye brows. You will see they are snakes. Sales man. Out to make a sale. That’s just the industry. Can’t blame them for making the sales pitch. “The miracle of renewals” is what one of our retired insurance friends always quote. They retired at age 44. Other one age 46.
Yeah totally normal family... brb flying to Hawaii for the weekend for a quick breakfast on the beach, back by dinner 😁
How do you feel living around that kind of wealth? Don't you guys feel like a small fish or always feeling like the poor person in the neighborhood? I grew up middle class but we lived way below our means, because you know that's the Asian life. I don't even want to live in a mansion or have that million dollar house because I'm just a below average joe, and living in that kind of neighborhood would instantly introduce a lifestyle creep that I would imagine could spiral out of control very quickly... Especially if you're driving a Tesla and your neighbor is driving a different Lambo for every day of the week... or your kid asking why don't love them because you didn't charter them and their friends to your non existent villa in Milan 😂
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