My dh had disability insurance and when he had to use it, he was presented with a formula based on a percentage of his monthly income. If you are working part-time or are a SAHM, I think you would be highly disappointed when it came time to collect. In other words you would find you've been paying for nothing. They'll be happy to take your money though.

If you become legitimately disabled, you can apply for SSDI.

Anonymous wrote:Look at the terms of your policy. I cancelled my portable policy because the disability payment was a percentage of my current income, which was zero as a SAHM. However, you should consider how good the policy is both price-wise and benefits-wise. If you are only going to SAHM for a couple of years, and the premiums on a new policy would be significantly higher when you go back to work, then it may make sense to keep it. But if you don't see yourself going back to work anytime in the near future, then it may make more sense financially to discontinue it.

+1

Look at the terms of your policy. I cancelled my portable policy because the disability payment was a percentage of my current income, which was zero as a SAHM. However, you should consider how good the policy is both price-wise and benefits-wise. If you are only going to SAHM for a couple of years, and the premiums on a new policy would be significantly higher when you go back to work, then it may make sense to keep it. But if you don't see yourself going back to work anytime in the near future, then it may make more sense financially to discontinue it.

Whether you could collect likely is a gray area that primarily depends on the language of your specific policy contract. I would talk to a insurance agent or lawyer or someone else knowledgable.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Many people have disability insurance through their employer and it replaces some fraction of their income. I don't know how it works in your situation and strongly suggest you check into what they would pay you if you became disabled.

I don't know if a SAHM can even get disability insurance.

I agree with this. If you're not earning, there is nothing to insure.

Of course there is.

If she gets disabled and can no longer care for herself and the children, how are you going to pay for her care AND childcare?

I'm not so sure. I've only heard of disability insurance in the context of replacing lost income. Do you know any companies offering disability insurance to people not earning income?

Long-time SAHM mom here. I never carried disability insurance once I stopped working, nor did any of my SAHM friends. We didn't know that (or should I say "if") such a thing existed, and if it did, we wouldn't have had the extra money to pay for it. The women I know who did become temporarily unable to care for their kids (which was a rare thing) either had family who came to help them out, or used savings to pay for someone to come in and help while the husband was at work.

22:26 here. I had a policy through DOJ. I left DOJ for another agency, and I took the policy with me. The benefits did not change. But the quarterly payments went up, finally to the point where I dropped it.

SAHMs need to self-insure. In other words, you and DH need to put money aside for such an eventuality. I am assuming you and DH are carrying life insurance on you, right? Recommend $1 M term.

Anonymous wrote:

Anonymous wrote:Many people have disability insurance through their employer and it replaces some fraction of their income. I don't know how it works in your situation and strongly suggest you check into what they would pay you if you became disabled.

I don't know if a SAHM can even get disability insurance.

I agree with this. If you're not earning, there is nothing to insure.

Of course there is.

If she gets disabled and can no longer care for herself and the children, how are you going to pay for her care AND childcare?

Anonymous wrote:I am not a SAHM, but I had disability insurance through my employer which I carried with me when I left that job. I haven't been able to get disability insurance since. It was cheap through the employer. I kept it for a long time, just got rid of it when the premiums went up yet again. It got very pricey.

(not the OP) Do the benefits stay the same if your income goes (for example) from $60k when you got the policy to $10k as a part-timer (or to $0 as a SAHM)?

I am not a SAHM, but I had disability insurance through my employer which I carried with me when I left that job. I haven't been able to get disability insurance since. It was cheap through the employer. I kept it for a long time, just got rid of it when the premiums went up yet again. It got very pricey.

Anonymous wrote:Many people have disability insurance through their employer and it replaces some fraction of their income. I don't know how it works in your situation and strongly suggest you check into what they would pay you if you became disabled.

I don't know if a SAHM can even get disability insurance.

I agree with this. If you're not earning, there is nothing to insure.

Many people have disability insurance through their employer and it replaces some fraction of their income. I don't know how it works in your situation and strongly suggest you check into what they would pay you if you became disabled.

I don't know if a SAHM can even get disability insurance.

I worked full time until five years ago, then worked part-time and now I am only working a couple of hours a week, earning less than $10K a year. I bought a private disability policy when I started working part time. I was earning about $60K a year and thought it was worth it. The bill just came for the policy renewal. It's $1700 a year. My gut feeling is this is ridiculous. I have some concern that if I drop the policy now and start working more when my kids are older, but get sick between now and then, that when I try to get a policy I will be turned down or the premiums will be outrageous.

Is anyone in a similar situation and if so do you carry disability insurance?

TIA.