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Benefits Question

otc

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I posted this in the "Why do you need money" thread but I thought I would start a thread for legit feedback
Originally Posted by otc
My benefits enrollment period ends at midnight...

How should I decide whether to buy life/disability insurance?

Last year, when I started working, I declined short and long term as well as life insurance (although I had a years worth of a small life insurance policy given by my university)...what factors should I be looking at?

Basic life and AD&D is something like $1.80 a pay period (26 periods)
Short term disability is $2.58
Long term (60% of earnings) is $4.17

these all seem like they are pretty cheap...why wouldn't I pay under $10 every 2 weeks for coverage?

I will need to provide evidence of insurability since I didn't take these when I was hired...but this should be easy as a healthy 24 year old right?
 

tj100

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Given the fact that they're so cheap, you might as well take the short and long term disability. Life insurance is probably completely unnecessary - but for $4 a month, what the heck?

Obviously, as a healthy 24 year old, the odds that you'll claim on any of these are quite low, which is reflected in their respective costs. But assuming that you make enough that $20 a month is basically free, you might as well take them.
 

xudisco07

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It depends what is the basic life coverage and is it term? I really hope you will never need AD&D. If you are 24 I doubt you really need that especially if it's term. If you have to pick between short or long term I would say you should pick short term since you would most likely need that more before long term.
 

Douglas

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I can't think of any reason why you wouldn't take the STD and LTD options. For the price of a couple of light beers every two weeks, it'll keep you in light beers while you and your crippled back are watching Montel all day long.

The life insurance is less important unless you have a spouse and/or children. Hard to say whether or not it's a good deal too without knowing what the death benefit is.
 

Piobaire

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You should absolutely take those!

Also, as a healthy 24 year old, you need to go buy some level term until age 90 life insurance. Get about 500k and also buy the little waiver that says you can increase your coverage at intervals no matter if you are currently insurable or not. Seriously, go do this and thank me later.
 

otc

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Thanks for the suggestions...I ended up taking them all (or rather, I checked the boxes before leaving work and intended to check back with the thread later but I went out to dinner with a friend and totally forgot so I ended up with all 3)
 

forex

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Originally Posted by Piobaire
You should absolutely take those!

Also, as a healthy 24 year old, you need to go buy some level term until age 90 life insurance. Get about 500k and also buy the little waiver that says you can increase your coverage at intervals no matter if you are currently insurable or not. Seriously, go do this and thank me later.


More about this please..
 

Piobaire

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Originally Posted by forex
More about this please..

Not sure what you mean. Obviously, life insurance is cheaper the younger you buy it. You will also become uninsurable at some point, and no one knows when this will be for them. So get some now, while you're young and it's cheap and you're still insurable. Buy the waiver as if your needs changed (wife, kids..or contract a terminal disease) you can up your coverage.
 

AlinaAlan

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Hello everybody! I am new member and I like the all above suggestions. Thanks for sharing.
 

WallStPeon

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Originally Posted by Piobaire
You should absolutely take those!

Also, as a healthy 24 year old, you need to go buy some level term until age 90 life insurance. Get about 500k and also buy the little waiver that says you can increase your coverage at intervals no matter if you are currently insurable or not. Seriously, go do this and thank me later.


You should definitely do this...
 

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