Your average everyday financial guru doesn’t tend to agree with insurance agents all that often, but one area in which they both tend to be pretty in-sync is the subject of disability insurance.
I’ve always found this sort of amusing. Disability insurance is arguably the most important financial product one can own prior to retirement and yet it’s probably the most under-purchased financial product in existence.
Perhaps this has to do with its steep price tag. High quality disability insurance is expensive, and who wants to buy a pricey insurance product that covers a life event we’d all much rather not have to experience? Sound logic be damned, because I’ve heard this one too many times in the past.
Maybe it’s the brutal medical underwriting process that precludes the purchase from an otherwise hungry crowd of potential purchasers? I used to jokingly say, “oh you’ve had hangnails before? Declined.”
Or maybe it’s really because…it’s all a scam.