Requesting Help with 2 Long-term DI Insurance Quotes

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Topic Author
Hopper
Posts: 4
Joined: Tue Jan 07, 2020 7:59 pm

Requesting Help with 2 Long-term DI Insurance Quotes

Post by Hopper »

Hello,

I’m evaluating two quotes that I requested for a personal long-term disability insurance policy and I would be grateful to get some feedback from the community on these before making a final decision. One quote is from The Standard with additional retirement contribution protection from Principal, and the other from Mass Mutual. Both quotes are for a non-nicotine user, list my occupation class as 5A, and contain what I have listed below. However, the person I spoke to about the Standard quote mentioned that certain elements, like the mental health benefit, could be watered down depending on the results of the underwriting process. This may be standard operating procedure, but it did give me pause. Ideally, I would like to use The Standard, but I do wonder if I need additional riders on the added retirement saving plan from Principal.

If necessary, I’m willing to go back to square one and work with an independent broker, but hopefully one of these policies contains everything I would potentially need in the event of disability. Thank you in advance for your help.

Both quotes contain:
-Basic monthly benefit that covers my current net monthly earnings after retirement contribution and taxes
-Benefit waiting period of 90 days
-Maximum benefit period to age 65 and payable to age 65

Plan 1: The Standard Platinum Advantage with a Separate Retirement Contribution Plan from Principal
-Includes presumptive disability benefit, family care benefit, rehabilitation benefit, coverage for mental disorder and/or substance abuse unlimited, survivor benefit
-Optional riders include: own occupation, basic residual disability, noncancelable policy, indexed COLA with 3% max increase
-No-cost riders include: benefit increase and automatic benefit increase
-This plan does not have built-in retirement contribution protection, so I was also provided with an additional plan/quote from Principal (Series 700 – HH750) to cover that. After a 180 day waiting period, it would contribute roughly $1000 per month to age 65. However, it does not seem to have the same riders as the DI plan from standard. It would potentially begin after “total disability” which it defines as “You must be unable to perform the substantial and material duties of your occupation and you are not working”. It is non-cancelable and includes rehabilitation and waiver of premium benefits. It also has a future benefit increase rider where the benefit would increase for the first 6 years.

Plan 2: Mass Mutual Radius Choice
-Total Disability Benefit
-Riders include: Extended partial disability benefits, 3% COLA rider, future insurability option, own occupation
-This plan does include a RetireGuard rider with a cost-of-living adjustment and 180 day waiting period. It would potentially contribute $1200 per month to my IRA.
-There is a mental disorder limitation on this plan where it would impose a maximum benefit period of 24 months for each period of mental health disability with no aggregate lifetime limit.
Topic Author
Hopper
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Joined: Tue Jan 07, 2020 7:59 pm

Re: Requesting Help with 2 Long-term DI Insurance Quotes

Post by Hopper »

Bump. Any input would be appreciated. Thank you in advance.
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Stinky
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Re: Requesting Help with 2 Long-term DI Insurance Quotes

Post by Stinky »

Hopper wrote: Mon Jun 07, 2021 10:33 am Bump. Any input would be appreciated. Thank you in advance.
I suggest that you private message BruDude, unless he responds to this thread first. He posts frequently about DI products.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
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simplesimon
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Re: Requesting Help with 2 Long-term DI Insurance Quotes

Post by simplesimon »

Do they cost the same?

I'm not sure that retirement contributions are really necessary as a serious disability would force you to retire anyway. I think an unlimited mental health disability policy would be a significant improvement.

Do work with someone who can give you a bunch of options. The above mention of BruDude would be a good start.
inverter
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Location: New York, NY

Re: Requesting Help with 2 Long-term DI Insurance Quotes

Post by inverter »

A couple of comments:

1. I would engage a broker as they tend to have good advice.
2. Get a quote from others, including Principal.
3. Consider changing your elimination period to 180 days or something higher. This has a large effect on your premium.
Rex66
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Re: Requesting Help with 2 Long-term DI Insurance Quotes

Post by Rex66 »

I’m not a big fan of the retirement plans

They typically force you into a trust where the fees aren’t reasonable.

I’d also look at guardian

Even if not a physician, I’d consider posting at whitecoatinvestor.com
Topic Author
Hopper
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Joined: Tue Jan 07, 2020 7:59 pm

Re: Requesting Help with 2 Long-term DI Insurance Quotes

Post by Hopper »

Stinky, simplesimon, inverter, Rex66…thank you to all of you for the helpful input, particularly about the problems related to the retirement contribution plan. I hadn’t thought about the 180-day waiting period either, but I think it makes sense to use that since I tend to carry 6 months of emergency fund anyways.

I wasn’t able to message BruDude previously – likely because I hadn’t posted before – but I will also do that to see if he has any availability to help. If not, the BH wiki page was very useful on this topic and I made sure that the DI policy contains all the essential items listed there, so thanks to the volunteers who keep that updated.
Rex66
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Re: Requesting Help with 2 Long-term DI Insurance Quotes

Post by Rex66 »

Just FYI guardian has an unlimited mental health if you wish that issue to be better covered
Topic Author
Hopper
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Re: Requesting Help with 2 Long-term DI Insurance Quotes

Post by Hopper »

Thanks one last time to everyone who offered advice in this thread. After I made my first post on the forum, I was able to PM BruDude and he helped me get an excellent policy with Guardian, which appears to be the best insurer for long-term disability.

In case anyone finds this thread in the future when doing research, I would recommend that you first review the Bogleheads wiki page about disability insurance, then contact BruDude directly for help in getting the right policy. He did a great job and knows his stuff.
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Stinky
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Re: Requesting Help with 2 Long-term DI Insurance Quotes

Post by Stinky »

Hopper wrote: Mon Jul 05, 2021 6:47 pm Thanks one last time to everyone who offered advice in this thread. After I made my first post on the forum, I was able to PM BruDude and he helped me get an excellent policy with Guardian, which appears to be the best insurer for long-term disability.

In case anyone finds this thread in the future when doing research, I would recommend that you first review the Bogleheads wiki page about disability insurance, then contact BruDude directly for help in getting the right policy. He did a great job and knows his stuff.
I’m glad that you reached out to BruDude, and that you got a disability policy that you’re pleased with.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
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