She should possibly look into personal individual disability income coverage to supplement the employer’s benefit. It is likely the employer coverage is capped at $5,000/month. At $190,000 of salary, and possibly retirement plan contributions being made by the employer, she is maybe covered for 40% or less of her income. She should be able to get up to about 70% of her income in coverage. She can elect a longer waiting period of 6 months or a year to bring the cost down. Also, the coverage provided by the employer would cause the benefits to be taxable, whereas any individual coverage would not be taxable income.
Sorry Dave, but that was a terrible answer on the disability question. The first thing she should do is ask the employer if the premium is being deducted. If it is her claim is taxable and she will face quite a shortage. If it is then she should DEFINITELY buy more individually.
It’s always better to tax the seed than the harvest! Pay for disability insurance with after tax dollars, not pre-tax.
We see cars like that all the time around here; scarcely need to look to know what sort of dumb@$$ is driving them...
Dave Ramsey ping