This post is the second in a series of 10 that covers each point of the MSN Money top 10 mistakes and hopefully will elaborate and add a little new parent thinking to the equation.
Mistake 2:
Shrugging off Disability Insurance
it’s statistically more likely that you will get injured than die while you�re in the workforce. Most employer-sponsored plans will pay you 60% of your salary if you become disabled. As a rule of thumb, if you’re earning under $100,000, that’s probably enough coverage
My employer sponsors a plan that covers 60% of my salary. I make significantly less than $100,000 but I still signed up for a supplemental disability insurance through Aflac that covers both myself and my wife and will include the baby when it is born. I did this because the added expense was minimal. Less than most online movie rental services per month and it gives me a little added piece of mind. Another factor is the fact that I had a friend that had an accident and the only thing that saved his finances in the long run is the Aflac supplemental that he had. The company sponsored policy that he had only lasted for a certain amount of time and he was laid up longer. Overall, I think it’s a splendid idea to have not only the initial company sponsored policy if it’s offered, but a supplemental as well. The benefits will surely outweigh the added costs.
Part 1: Skimping on Life Insurance
Part 3: Buying Life insurance for Baby
[tags]parent, money, mistakes, saving, disability insurance[/tags]
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