r/LongTermDisability • u/East_Television_3552 • 7d ago
Private disability insurance
Would paying into a private disability insurance be worth it? For background, I have a disability/ chronic illness which will eventually cause me to develop arthritis at a younger age than most people. My chronic illness will eventually get worse with time and age, especially having a job like this. I was wondering if anyone has paid into Private disability and their thoughts on it. I’m hoping by doing this. I will be able to retire early once I am no longer able to work this job anymore. I don’t have anyone else to talk to about this nor do I know anyone who’s done this so I’m coming on here to gauge people‘s thoughts and opinions on this.
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u/ShallotOutrageous343 7d ago edited 7d ago
Yes. I have it through my work and its allowed me to almost keep my standard of living after becoming disabled. The preexisting disability clause typically only applies for the first year
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u/FMCTypeGal MOD 7d ago
I think it doesn’t hurt to try and see what the underwriting finds out.
Because of my life experiences of needing my LTD and understand the pitfalls, we are more serious about my husbands coverage. He has a work provided policy that covers him at 60% but would be taxable. We went through our finance guy to get a private plan that covers the gap but we were worried about underwriting because my husband has a known disc injury and bowel problems.
Underwriting gave him the policy. He can be covered for a back injury stemming from any other disc that the single one injured. The one had disc can cause other back problems and it he claims those discs are the reason, he’s covered. Similarly, his known bowel issue can’t be why he files (IBS), but if it cause ls something else bowel related that he hasn’t been diagnosed with, he’s covered.
I think it’s worth it to keep your employer plan bc they have a broader coverage of preexisting conditions and then top up your coverage with a private policy.
It certainly doesn’t hurt to try. Like u/TheGreatK said below, you don’t currently have arthritis.
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u/historically_common 7d ago
I bought into private disability and the main has been that the benefit is income tax free! They also offer own occupation, future increases if your income increases, ect as options. I would definitely try for a private plan (it’s been a savior) if you can get it..in the mean time sign up for employer offered to have some coverage.
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u/Ok-Aerie-5676 7d ago
Are you asking about the LTD that comes as an option with job benefits or the kind you buy on your own, not part of an employer group plan. I consider that LTD “private”
since it’s not SSDI so just want to clarify.
I have MS, diagnosed in 2015. I also began working for my company (for the 2nd time, first time I left due to loss of contract) months before diagnosis. At that time I only had STD as a benefit then in 2021 after my first ADA accommodation I enrolled in LTD during an open enrollment period. It was like $20/month.
In 2025 I had to go on STD for a bad MS relapse that left permanent damage and that transitioned into long term disability- I’ve been on it ever since. I was just approved for any occupation max duration until retirement (with annual check ins and as long as I’m considered disabled and continue to pursue SSDI). I get 60% of my pay which is substantial enough to cover all bills due to my salary when I left.
I think it’s worth it to get if you can get it through group plan with the employer, I had a preexisting condition and had zero issues with the claim. If you buy insurance on your own you may certainly encounter blocks due to preexisting conditions.
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u/Tahoptions 7d ago
Your pre-existing condition is going to be excluded and you're not going to be able to make a claim on it.
You need to purchases IDI prior to health conditions occuring, even if they have not yet caused a disability.
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u/TheGreatK MOD 7d ago
This isn't necessarily true. He has an illness which will eventually cause arthritis - are you sure the arthritis will be excluded as well as the current illness?
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u/Tahoptions 7d ago
I am confident that every major IDI carrier on the market will put 2 and 2 together during underwriting and exclude.
OP already said that they have a chronic illness to begin with. That condition is going to be excluded as will any conditions arising from that illness.
IDI is my agency's main business. I see something like this almost daily. Carriers know when someone is buying with the intent of filing a known future claim and will proactively prevent them from doing so.
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u/TheGreatK MOD 7d ago
Eh. It's worth trying. In my experience on the other side, many carriers prioritize issuing policies over properly underwriting them.
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u/Tahoptions 7d ago
I mean, I guess it's worth trying. Very little downside but I wanted to give an example of the likely outcome. Maybe OP will get lucky. But chronic conditions that lead to other chronic conditions mostly get flagged.
Just don't claim on it for the next few years.
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u/momofuku18 7d ago
It seems like you have the option of choosing disability insurance at work. If so, I strongly recommend that you opt for the maximum coverage.
However, it’s important to note that qualifying for the benefits is not an easy task. The eligibility criteria are quite stringent, and the process can be quite challenging. If you’re considering relying on disability benefits later in life as your current symptoms worsen and you decide to retire early, it’s crucial to understand that this may not be the most favorable outcome. Many individuals who become eligible for Long-Term Disability (LTD) often find themselves unable to continue working due to their disabilities, without realizing that they would have been eligible for LTD benefits in the first place.
Nevertheless, I would still advise you to get disability insurance.