Insurance Questions [Life and disability]

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Topic Author
PurpleTiger
Posts: 8
Joined: Sun Apr 11, 2021 11:26 am

Insurance Questions [Life and disability]

Post by PurpleTiger »

Hi everyone,

I posted portfolio review questions in the Personal Investment forum, here, but would like to get some advice on the insurance portion. Relevant excerpts from my post:
PurpleTiger wrote: Sun Apr 11, 2021 12:01 pm I got invested in Ameriprise as a young adult when I was switching jobs and needed to roll over my first 401k. My advisor urged me to buy disability insurance and an indexed universal life policy (with RiverSource, of course).
My (41F) insurance coverage/policies:
PurpleTiger wrote: Sun Apr 11, 2021 12:01 pm
  • Insurance policies @ Ameriprise:
    • Disability Income Insurance $1850/mo benefit, 90 day elimination period, ~$157/mo premium
    • Indexed Universal Life Insurance $375k death benefit, current value ~$31k, surrender value ~$25k, ~$154/mo premium
      • 20% premium allocated to Fixed Account
      • 80% premium allocated to Indexed S&P 500 Account
  • Employer Coverage (no cost):
    • Life Insurance @ 3x salary
      • Short Term Disability @ 80% wages for the first 90 days, 70% wages for the next 90 days
      • Long Term Disability @ 60% wages up to $25k/mo until Social Security retirement age (67), but not less than 60 mos
DH's (36M) insurance coverage/policies:
PurpleTiger wrote: Sun Apr 11, 2021 12:01 pm
  • Supplemental Long Term Disability @ The Standard Insurance Company:
    • $39/mo premium, $625/mo benefit up to age 67 for permanent disability
  • Employer Coverage (no cost):
    • Life Insurance @ 1x salary
Questions:
PurpleTiger wrote: Sun Apr 11, 2021 12:01 pm
  • Insurance Policies
    • Should I just cash out the IUL policy, since I am insured at 3x my salary through my employer at no cost to me?
      • I have the ability to apply for up to $1mm supplemental life insurance through my employer which is portable
    • Should I cancel the disability policy without another one in place?
      • I tried to increase the existing coverage several years ago and was denied during underwriting due to existing health conditions, so it's not clear to me how easy it will be to get another policy elsewhere
      • I am covered for both short and long term disability through my employer at no cost to me
Not sure what to do here, so would appreciate any advice. Thanks!
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