Pricing long-term disability insurance?

[danielwis]

Make sure you take it and do not delay. I was healthy, and come from a healthy family. Grandparents lived to be very old. Parents are elderly and doing fine. I thought about buying disability insurance but never took the step, feeling I was a picture of health. I even had the forms sitting in my office and thought I’d eventually “get to it”.

I awoke one morning with some pretty significant neurological symptoms. I was admitted to the hospital and two days later was told I have MS. The MS is in remission and I am doing well, but I can no longer get disability insurance. The silver lining for me, I guess, is that I am saving like there might not be a work day tomorrow. I am working and doing well, but not having disability insurance is troubling.

[moneymaker]

On a related topic many employers are offering accidental death and dismemberment and it is backed by a life insurance company, but it is not life insurance (has the appearance of being life insurance). My credit union being sappy as they are tried to peddle this stuff my way-no thank you!

[moneymaker]

On a related topic many employers are offering accidental death and dismemberment and it is backed by a life insurance company, but it is not life insurance (has the appearance of being life insurance). My credit union being sappy as they are tried to peddle this stuff my way-no thank you!

[moneymaker]

On a related topic many employers are offering accidental death and dismemberment and it is backed by a life insurance company, but it is not life insurance (has the appearance of being life insurance). My credit union being sappy as they are tried to peddle this stuff my way-no thank you!

[moneymaker]

On a related topic many employers are offering accidental death and dismemberment and it is backed by a life insurance company, but it is not life insurance (has the appearance of being life insurance). My credit union being sappy as they are tried to peddle this stuff my way-no thank you!

[moneymaker]

On a related topic many employers are offering accidental death and dismemberment and it is backed by a life insurance company, but it is not life insurance (has the appearance of being life insurance). My credit union being sappy as they are tried to peddle this stuff my way-no thank you!

[edna_mode]

@danielws: Sorry to hear it. What I find so troubling about purchasing something like life, disability or long-term care insurance is that it suffers the same economic dynamic as shopping for a house or wedding: it’s a very expensive one-off transaction. Sure, you are putting in premiums for a long time but by the time you know it was or was not a good deal, it is too late.

Not only that but the best deals are offered to that demographic taking on the biggest risk: that the insurer will go bankrupt before their services are needed.

I wonder if there is a way to incentivize this industry the way more common retail ones are. For example, if I have a bad experience with a bank, a restaurant or a department store, I can penalize them by withholding future business — and conversely reward them by granting more future business if they are good. Recommendations are rather indirect feedback — and complaints could be considered the cost of doing business if you price your margins high enough.

This is why I would like to see greater standardization of services offered, and price transparency. But it probably won’t happen even with something as tangible as real estate, let alone insurance.

[edna_mode]

@danielws: Sorry to hear it. What I find so troubling about purchasing something like life, disability or long-term care insurance is that it suffers the same economic dynamic as shopping for a house or wedding: it’s a very expensive one-off transaction. Sure, you are putting in premiums for a long time but by the time you know it was or was not a good deal, it is too late.

Not only that but the best deals are offered to that demographic taking on the biggest risk: that the insurer will go bankrupt before their services are needed.

I wonder if there is a way to incentivize this industry the way more common retail ones are. For example, if I have a bad experience with a bank, a restaurant or a department store, I can penalize them by withholding future business — and conversely reward them by granting more future business if they are good. Recommendations are rather indirect feedback — and complaints could be considered the cost of doing business if you price your margins high enough.

This is why I would like to see greater standardization of services offered, and price transparency. But it probably won’t happen even with something as tangible as real estate, let alone insurance.

[edna_mode]

@danielws: Sorry to hear it. What I find so troubling about purchasing something like life, disability or long-term care insurance is that it suffers the same economic dynamic as shopping for a house or wedding: it’s a very expensive one-off transaction. Sure, you are putting in premiums for a long time but by the time you know it was or was not a good deal, it is too late.

Not only that but the best deals are offered to that demographic taking on the biggest risk: that the insurer will go bankrupt before their services are needed.

I wonder if there is a way to incentivize this industry the way more common retail ones are. For example, if I have a bad experience with a bank, a restaurant or a department store, I can penalize them by withholding future business — and conversely reward them by granting more future business if they are good. Recommendations are rather indirect feedback — and complaints could be considered the cost of doing business if you price your margins high enough.

This is why I would like to see greater standardization of services offered, and price transparency. But it probably won’t happen even with something as tangible as real estate, let alone insurance.

[edna_mode]

@danielws: Sorry to hear it. What I find so troubling about purchasing something like life, disability or long-term care insurance is that it suffers the same economic dynamic as shopping for a house or wedding: it’s a very expensive one-off transaction. Sure, you are putting in premiums for a long time but by the time you know it was or was not a good deal, it is too late.

Not only that but the best deals are offered to that demographic taking on the biggest risk: that the insurer will go bankrupt before their services are needed.

I wonder if there is a way to incentivize this industry the way more common retail ones are. For example, if I have a bad experience with a bank, a restaurant or a department store, I can penalize them by withholding future business — and conversely reward them by granting more future business if they are good. Recommendations are rather indirect feedback — and complaints could be considered the cost of doing business if you price your margins high enough.

This is why I would like to see greater standardization of services offered, and price transparency. But it probably won’t happen even with something as tangible as real estate, let alone insurance.

[edna_mode]

@danielws: Sorry to hear it. What I find so troubling about purchasing something like life, disability or long-term care insurance is that it suffers the same economic dynamic as shopping for a house or wedding: it’s a very expensive one-off transaction. Sure, you are putting in premiums for a long time but by the time you know it was or was not a good deal, it is too late.

Not only that but the best deals are offered to that demographic taking on the biggest risk: that the insurer will go bankrupt before their services are needed.

I wonder if there is a way to incentivize this industry the way more common retail ones are. For example, if I have a bad experience with a bank, a restaurant or a department store, I can penalize them by withholding future business — and conversely reward them by granting more future business if they are good. Recommendations are rather indirect feedback — and complaints could be considered the cost of doing business if you price your margins high enough.

This is why I would like to see greater standardization of services offered, and price transparency. But it probably won’t happen even with something as tangible as real estate, let alone insurance.

[joec]

The main problem with company plans is I don’t think a lot of them is portable. When job change happens, folks tend to be busy with a lot of other stuff that they won’t bother to re-qualify for a new plan even though they might need it.

LTD is expensive because there’s a much higher chance you will use it compared to any other insurance throughout your lifetime. I think I’ve read something like 25% throughout your work career…

That goes for Long Term Care as well. Depending on your work, probably nice to have if you can afford it.

[joec]

The main problem with company plans is I don’t think a lot of them is portable. When job change happens, folks tend to be busy with a lot of other stuff that they won’t bother to re-qualify for a new plan even though they might need it.

LTD is expensive because there’s a much higher chance you will use it compared to any other insurance throughout your lifetime. I think I’ve read something like 25% throughout your work career…

That goes for Long Term Care as well. Depending on your work, probably nice to have if you can afford it.

[joec]

The main problem with company plans is I don’t think a lot of them is portable. When job change happens, folks tend to be busy with a lot of other stuff that they won’t bother to re-qualify for a new plan even though they might need it.

LTD is expensive because there’s a much higher chance you will use it compared to any other insurance throughout your lifetime. I think I’ve read something like 25% throughout your work career…

That goes for Long Term Care as well. Depending on your work, probably nice to have if you can afford it.

[joec]

The main problem with company plans is I don’t think a lot of them is portable. When job change happens, folks tend to be busy with a lot of other stuff that they won’t bother to re-qualify for a new plan even though they might need it.

LTD is expensive because there’s a much higher chance you will use it compared to any other insurance throughout your lifetime. I think I’ve read something like 25% throughout your work career…

That goes for Long Term Care as well. Depending on your work, probably nice to have if you can afford it.

[Author]

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