| Newbie-question-just became total disable- 401k question |
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cshot4
New Poster
Cash: $ 0.45
Posts: 2
Joined: 20 Jan 2007
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| Newbie-question-just became total disable- 401k question |
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have 2 plans from different companies $100,000 in one $57000 in another
Concerns: LTD will be paying only 60% - unable to keep up current bills
(budget set to go into red the end july 07) - if I cash out both plans paying 20% (hardship irs) know i will be losing (and now everything is important, however i can payoff all bills including home - good thing i will be able to go onto my wife's insurance with state on my last day with current company.
OPTIONS PLEASE
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Sat Jan 20, 2007 3:46 am |
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coaster
Senior Advisor
Cash: $ 1355.60
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Joined: 11 Oct 2005
Location: Wisconsin
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Have a serious pow-wow with your family and cut your expenses so you don't have to look at cashing out your 401(k)s. Just because you're disabled doesn't mean you don't have any future. If you cash out your 401(k)s you're robbing your future just to get past July. That's very short-sighted. I think if you and your family acknowledge that everything is different now, you can make some sacrifices and you can make it work.
Best wishes and good luck. 
~Tim~
Eye Candy : Why Whimsy
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Sat Jan 20, 2007 4:28 am |
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cshot4
New Poster
Cash: $ 0.45
Posts: 2
Joined: 20 Jan 2007
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disable due to heart (major heart attack in 02 - coded) - went into sudden death 11/06 - doc's save me again - major damage to heart - had icd implacement 12/06 to give me a 50/50 chance on surviving. At this point in my life - just want to be stress free - and enjoy what i have left - which is my wife and family.
we have discuss the future and I am paying off everything possible,
if i pay off all bills (inc the 20% irs) - i will still have $20k to restart on investments plus savings.
i know it sounds like i have made my mind up - i havent -- would have been out of debt in 5 years - now this
thanks for you reply and any additional advice
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Sat Jan 20, 2007 4:46 pm |
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coaster
Senior Advisor
Cash: $ 1355.60
Posts: 6675
Joined: 11 Oct 2005
Location: Wisconsin
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Yes, but you're still taking away THEIR financial security for the future. And you're taking a gamble that you lose the 50/50 bet. Wouldn't you rather bet on the other half of that gamble?
~Tim~
Eye Candy : Why Whimsy
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Sat Jan 20, 2007 6:07 pm |
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Airborne
New Member
Cash: $ 1.40
Posts: 7
Joined: 27 Nov 2006
Location: Virginia
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| How to better protect yourself against life-changing events |
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cshot4
You would have received a nice check had you been covered under critical illness insurance. This insurance covers a lot of nasty things not covered by health ins.
When I say "not covered", I mean stuff like being out of work for cancer, heart attack, organ failures, etc, or receiving treatment for illnesses which prevent you from working.
Believe it or not, critical illness insurance is inexpensive compared to major medical coverage.
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Sat Jan 20, 2007 11:24 pm |
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coaster
Senior Advisor
Cash: $ 1355.60
Posts: 6675
Joined: 11 Oct 2005
Location: Wisconsin
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What's the difference between that and disability insurance? Or is it the same thing by a different name?
~Tim~
Eye Candy : Why Whimsy
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Sat Jan 20, 2007 11:59 pm |
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Airborne
New Member
Cash: $ 1.40
Posts: 7
Joined: 27 Nov 2006
Location: Virginia
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| Critical Illness + What it's for |
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Pays 100% of maximum benefit ($25k - $1Mil.) for
Heart attack
Life threatening cancer (when malignant & growing outside its original area
Stroke when (blood vessel ruptures in brain, blood clot blocks blood flow)
Alzheimers (advanced stages requiring daily supervision and you cannot 3 or more daily living tasks
Major Organ Transplant (clinical evidence of organ failure)
Also,
MS
Paralysis
Kidney failure
Blindness
Deafness
This is not a substitue for major medical coverage but should be used in tandem with health insurance & bridges the gap between health & disability.
I did one last week on a 46 yr. old female smoker - premium was roughly $40 p/month for $25k.
If you cant work for 3 - 6 months due to a major illness and are not disabled, a check for $25k or so within 3-4 weeks could come in real handy.
When I was first skeptical of the value of this insurance, a friend asked me if I've ever had a relative going thru prolonged medical treatment and how it affected them financially. Of course I haven't.
Here's what he said -
Once you've cashed in vacation & medical leave if you have any, how would your bills be paid ?
And, how about the cost of significant others lodging in case the treatment facility is not local, and possibly flying other loved ones out to you.
These add up rather quickly.
Absolutely avoid any type of critical illness insurance which does not cover cancer. Believe it or not, I know of least one VERY LARGE insurance company that has had difficulty getting cancer covered in my state - VA.
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Sun Jan 21, 2007 12:58 am |
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coaster
Senior Advisor
Cash: $ 1355.60
Posts: 6675
Joined: 11 Oct 2005
Location: Wisconsin
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OK, so this is NOT disability insurance. ie pays a percentage of your income if you're unable to work due to disability per policy definition. This is more like an indemnity for a covered risk. And there are a lot of things that could cause a person to be unable to work that aren't covered by these named risks. Thanks for making that clear, so no one thinks this is or takes the place of disability insurance.
But, as you say, if one of the covered events occurs, it would be handy to have this payment in addition to disability and health insurance coverages.
~Tim~
Eye Candy : Why Whimsy
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Sun Jan 21, 2007 1:30 am |
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