I am 60 years old, unemployed and have an individual long term disability policy with CIGNA (not long term care) I purchased after I was let go from my previous job. It pays me 60% of my previous monthy salary (the benefit waiting period is 180 days) up to the age of 70 whether I am working or not. I am single, have no dependants, am in excellent health and in good shape financially. I don’t anticipate working again. The policy costs around $1,300/year.
Would you recommend I keep paying on this policy?
Terry Says: How lucky do you feel?? Seriously! Actually, since you have no one to take care of you in case of an accident or illness, I would pay for at least two more years until you qualify for Social Security. The ideal is to postpone taking Social Security to full retirement age, but at least it would be a (costly) backstop in case of an unexpected event. You don’t say how much you have in savings, or how you are planning to live and finance the rest of your life, so other than these comments, it’s a little tough to give you more specific advice.