May 29, 2023
Should You Carry Disability Insurance Beyond Age 65?
Generally, disability insurance may protect your ability to earn income if you cannot work due to a disability. The insurance could pay a monthly benefit to replace a portion of the income you would make. The benefit periods are limited to specific years stated in each policy.
When planning your financial and life goals, you may wonder if you should carry disability insurance beyond age 65. The answer varies per person based on several factors, such as whether you’re considering retiring soon or plan to keep working.
Can I Get Disability Insurance After Age 65?
You are eligible to apply for Social Security Disability Insurance (SSDI) benefits until your retirement age. If you were born in 1960 or after, the full retirement age is 67 years old. You can also have a long-term disability (LTD) policy with some private insurance companies.
If you have LTD with a private insurance company, some rules may apply if you’re 65 or older. For example, some LTD policies offer 12 to 24 months of benefits. You can check the section of your policy about maximum benefits to learn how long your policy could provide you with disability income in eligible circumstances.
Should I Have Disability Insurance After Age 65?
Because each person’s life and financial background vary, it’s beneficial to meet with a financial planner who can help you determine if you should keep disability insurance after the age of 65. Knowledgeable and experienced professionals can guide you through decision-making and planning processes.
When you meet with a financial advisor, they’ll discuss various factors, including the following:
- What is the size of your future savings compared to your existing nest? If you plan to keep working to reach your saving goals, an LTD policy may be a good fit for you.
- How much do you plan to save throughout the rest of your career? If you’ve already met or surpassed your savings goals, then whether you should have an LTD policy may depend on how much longer you plan on working and the risks related to your profession.
- What are your spending habits? An advisor can look at your expenses to evaluate the steps you should take soon or in the future, like if you should plan to keep working with an LTD policy or not.
Contact Focus Partners Wealth to Discuss Your Goals
Could an LTD policy be a part of your financial plan? Schedule time with our trusted advisors, who help individuals plan their finances for the future. To schedule a consultation, contact our advisor team today!
For informational purposes only. The content does not purport to present a complete picture, but Focus Partners believes the information is representative of issues and needs facing some clients and why they may seek our services. This should not be construed as specific investment, tax, or legal advice. Individuals should seek advice from their wealth advisor or other advisors before undertaking actions in response to the matters discussed. No client or prospective should assume the above information serves as the receipt of, or substitute for, personalized individual advice. This represents the opinions of Focus Partners, may contain forward-looking statements, and presents information that may change due to market conditions or other factors. Nothing contained in this presentation may be relied upon as a guarantee, promise, assurance, or representation as to the future. Investing involves risk, including, but not limited to, loss of principal. Numerous representatives of Focus Partners may provide investment philosophies, strategies, or market opinions that vary. The appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives. This is prepared using third party sources considered to be reliable; however, accuracy or completeness cannot be guaranteed. The information provided will not be updated any time after the date of publication. Focus Partners Wealth does not provide insurance advice.
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