In today’s episode, Katie Brewer from Your Richest Life Financial Planning joins us to chat about long-term disability coverage. Katie is a CERTIFIED FINANCIAL PLANNER™, and shares some wisdom she’s picked up over the years surrounding why LTD coverage is so important and what to look for when evaluating a policy.
Throughout the episode, Katie and Grant review many aspects of long-term disability coverage, how to decide whether to obtain insurance, and a few things you can do to reduce the cost of a policy.
[01:27] Katie’s Background – Katie shares how she helps her clients make smart financial decisions.
[07:27] Why Long-term Disability is Important – Katie shares her thoughts on why it’s crucial to have a safety net in case of an illness that prevents you from working.
[11:14] Details of Long-term Disability – What constitutes a disability, how long-term disability insurance works, and different ways insurance companies structure their long-term disability policies.
[19:18] Evaluating a Policy – Katie and Grant review several factors you should consider when you’re evaluating a long-term disability insurance policy.
[22:43] Riders – Riders are a set of options that come with your insurance policy. These are commonly available in long-term disability policies. Katie dives into details of the most common riders and their benefits.
[25:54] Residual Disability – What happens if you’re only able to work part-time due to a long-term disability and how you can choose your insurance options to prepare for such a situation.
[31:57] Group Coverage – Grant and Katie discuss what you can do if you have a group insurance policy that does not fulfill your expectations.
[35:45] Future Insurability – How you can update your insurance options to match your future needs and what to consider before switching to a new insurance policy.
[43:15] Working with Insurance Agents – Katie shares her thoughts on why it’s essential to work with independent insurance agents who are not beholden to one insurance company.
[50:39] Taxability of Benefits – How taxation comes into play, depending on how your insurance policy is structured.
[56:00] Insurance Through Professional Organizations – Grant and Katie share their experiences of obtaining group insurance policies through professional organizations.
[58:20] Final Thoughts – Katie sums up the most important things you should keep in mind when you’re thinking of obtaining a long-term disability insurance policy.