Would it be better to opt. out on social security and get a long term disability insurance?
Posted on September 02nd, 2008 in Disability Insurance
electromanbd asked:
I am 27 and was told that I could opt. out of social security, and could get a long term disability insurance alot cheaper. If I did this I woul dump the rest in my 401k, which will add up to around 400 a month.
I am 27 and was told that I could opt. out of social security, and could get a long term disability insurance alot cheaper. If I did this I woul dump the rest in my 401k, which will add up to around 400 a month.
This post has 2 comments
September 3rd, 2008
What type of job is this? I would be cautious here as Social Security is not optional. With the majority of jobs, it is REQUIRED. However, with some governmental/state jobs, it is not required but for these employers you also cannot opt into Social Security.
September 4th, 2008
Social Security is not an optional thing to pay into. The government takes it from your paycheck to pay the people currently collecting social security. As far as disability insurance goes, you should probably purchase some level of insurance. If you were to become totally disabled at 27 with no insurance, you would be forced to live the rest of your life on what little amount of money social security will pay you. When looking for a policy, make sure you find one that won’t be reduced when social security kicks in after 6 months. In some policies, after 6 months pass, the company automatically assumes you are getting social security and will reduce your benefit based on what you would receive from social security. Of course you have to convince social security that you are disabled in order to even get the benefits from them. If you don’t then you have a disability policy paying you a reduced benefit and no supplemental income from social security.
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