T Baggins
June 11th, 2013, 02:28 PM
We all know racing is a dangerous sport, but try as we might we just can't seem to quit... and if we get hurt and are unable to work, then what do we do?
Racers have a terrible time buying Short or Long Term Disability Insurance - because it's either too expensive (if you're honest on the application anyway...) or the insurance company will exclude benefits for any injury that occurs from Motorcycle Racing or other thrill-sports like scuba diving, sky diving, racing cars, amateur aviation, etc.... And they'll also want to do all the underwriting stuff which includes bloodwork and other invasive testing... which could kick you into a higher rate category, or they could reject you altogether.
So what do you do?
I bought Mortgage Disability Insurance for $376 per year and it has nearly the same monthly benefit amount as the straight disability insurance, and a three year benefit period. Biggest difference between the two is the straight disability cost almost TEN TIMES as much, required underwriting with the full cavity search, and it excluded anything to do with racing... This is NOT the mortgage insurance premium you pay thru your mortgage lender, it is completely different and is sold by most all of the major carriers. Mortgage Insurance Premium covers THE LENDER if you default on the loan.... Mortgage Disability Insurance PAYS YOUR MORTGAGE if you are unable to do so due to injury.
If I'm hurt bad enough that I can't work at all - really all that I care about is the roof over my head (and maintaining the equity I've built up in it) - no point in throwing all of that away if I don't have to. If I'm not well within the three year benefit period, I'm likely to be eligible for Social Security Disability - or will have had TIME to make adjustments to my life situation so that we can survive.
So there you go. I don't sell insurance or anything like that, but as a class sponsor this year (as Money$mart) I thought maybe the forums would be a good place for me to share little tidbits that might be of interest to you.
Feel free to holler at me if you have any questions about this or any other financial things around debt management, retirement, insurance, whatever... I'm happy to help. :D
Racers have a terrible time buying Short or Long Term Disability Insurance - because it's either too expensive (if you're honest on the application anyway...) or the insurance company will exclude benefits for any injury that occurs from Motorcycle Racing or other thrill-sports like scuba diving, sky diving, racing cars, amateur aviation, etc.... And they'll also want to do all the underwriting stuff which includes bloodwork and other invasive testing... which could kick you into a higher rate category, or they could reject you altogether.
So what do you do?
I bought Mortgage Disability Insurance for $376 per year and it has nearly the same monthly benefit amount as the straight disability insurance, and a three year benefit period. Biggest difference between the two is the straight disability cost almost TEN TIMES as much, required underwriting with the full cavity search, and it excluded anything to do with racing... This is NOT the mortgage insurance premium you pay thru your mortgage lender, it is completely different and is sold by most all of the major carriers. Mortgage Insurance Premium covers THE LENDER if you default on the loan.... Mortgage Disability Insurance PAYS YOUR MORTGAGE if you are unable to do so due to injury.
If I'm hurt bad enough that I can't work at all - really all that I care about is the roof over my head (and maintaining the equity I've built up in it) - no point in throwing all of that away if I don't have to. If I'm not well within the three year benefit period, I'm likely to be eligible for Social Security Disability - or will have had TIME to make adjustments to my life situation so that we can survive.
So there you go. I don't sell insurance or anything like that, but as a class sponsor this year (as Money$mart) I thought maybe the forums would be a good place for me to share little tidbits that might be of interest to you.
Feel free to holler at me if you have any questions about this or any other financial things around debt management, retirement, insurance, whatever... I'm happy to help. :D