Long-Term Length?

Dave explains disability insurance and how much you should have for how long.

QUESTION: Bill asks if he should have long-term disability and, if yes, how much for how long.

ANSWER: Yes, you should have long-term disability and carry it your entire life.  You should carry all you can get – which is usually 60% - 70% of your income.  Don’t buy disability insurance pre-tax.  If you get it through work, pre-tax, then your disability income is taxable, and you don’t want that.