Ditch disability?

[Anonymous]

Anonymous wrote:You can't afford the car payment or the private school. Can you get a less expensive car? Send kids to public?

Are you serious, 400/month is a modest car

[Anonymous]

Are your student loans at a low rate?

I would make the minimum payment on those, and use the extra money to pay off the equity loan and build up a substantial emergency fund. Then you could think about dropping the disability.

Do you own your practice? Is that why your equity loan is maxed (for the buy-in)? Are you paid a straight salary, or do you get part of the profits?

[Anonymous]

For 17 years, I paid my disability insurance. I never used it. Then, I was diagnosed with cancer. The disability insurance took away one worry (financial) while dealing with real issues.

[Anonymous]

OP here.
The overwhelming consensus is to keep it. So I will.

Was only considering ditching because for the past year my husband and I have started aggressively paying down debt, and I could just think of "better" places that 1200 could go. Sounds like they're really not better, after all.

Thanks for your input, guys! Appreciate it.

[Anonymous]

Anonymous wrote:Are your student loans at a low rate?

I would make the minimum payment on those, and use the extra money to pay off the equity loan and build up a substantial emergency fund. Then you could think about dropping the disability.

Do you own your practice? Is that why your equity loan is maxed (for the buy-in)? Are you paid a straight salary, or do you get part of the profits?

Loans at 5%

Work for the county. Hourly salary.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Don't drop disability. Stop paying extra on the student loan. And consider refinancing to a 30-year mortgage if money is that tight.

It's not that money is tight - we can afford to pay it right now. But I'm thinking that $1200 could go to pay toward my car, or student loan, or anything else. Just wondering if I really really need the disability.

You need the disability.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Are your student loans at a low rate?

I would make the minimum payment on those, and use the extra money to pay off the equity loan and build up a substantial emergency fund. Then you could think about dropping the disability.

Do you own your practice? Is that why your equity loan is maxed (for the buy-in)? Are you paid a straight salary, or do you get part of the profits?

Loans at 5%

Work for the county. Hourly salary.

Keep the disability. But look for other places where you can cut (eating out/entertainment) to help you pay down that debt. You are living above your means.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You can't afford the car payment or the private school. Can you get a less expensive car? Send kids to public?

Are you serious, 400/month is a modest car

No, you can drive a paid for car. We do and make a lot more money. It is also one of the reasons we have very little debt, it frees up a lot of money to throw at student loans, etc.

Dropping disability is idiotic. Maybe you can't max your retirement now given your very high minimum monthly expenses compared to your income.

And why is your mortgage payment so high?!!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You can't afford the car payment or the private school. Can you get a less expensive car? Send kids to public?

Are you serious, 400/month is a modest car

No, you can drive a paid for car. We do and make a lot more money. It is also one of the reasons we have very little debt, it frees up a lot of money to throw at student loans, etc.

Dropping disability is idiotic. Maybe you can't max your retirement now given your very high minimum monthly expenses compared to your income.

And why is your mortgage payment so high?!!

OP here.

We refinanced to 15 year so that is why the payment is 2900. My husband wants to refinance back to 30 year for extra cash but I want to keep it where it is as long as we are not struggling to pay it, which we are not.

I will keep the disability. It's rare to get such a consensus on DCUM so I will go with that!

[Anonymous]

Anonymous wrote:Why is your disability so high, we pay 230 a month to replace 9500 / month income.

Which insurance do you have? I pay about $160 per month for only $2500 monthly coverage - and this is LTD not STD.

[Anonymous]

Just to add a scare story - DC's oral surgeon/dentist in Potomac was fantastic with a thriving practice, beautiful family, and great staff. He was a super stylish dresser that I would always run into at Neiman-Marcus.

One day he just tripped on a curb and hit his head. There was no injury to his cognitive abilities, but he lost enough mobility in his left hand that he eliminated his oral surgery practice and was limited to general dentistry. The loss of professional expertise and income sent him into a deep depression. First he lost his wife and then his practice. Later, his dental hygienist started bringing him food every week. Eventually, he committed suicide.

I don't know if having income would have helped him save his family and himself from the downward spiral. But, when your profession and identity is so closely linked to your expertise and fine motor skills, you have to hedge your bets and have insurance if things go wrong.

[Anonymous]

Anonymous wrote:OP here.
The overwhelming consensus is to keep it. So I will.

Was only considering ditching because for the past year my husband and I have started aggressively paying down debt, and I could just think of "better" places that 1200 could go. Sounds like they're really not better, after all.

Thanks for your input, guys! Appreciate it.

Good decision, OP. I hope you will never need it.