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Financial Planning / Foolish 401(k)s


Subject:  Re: 401(K) Disability Protection Plan Date:  1/24/2005  5:23 PM
Author:  PayingFool Number:  18458 of 26128

Consider the cost/benefit. Compare the two disability plans -- one replacing 401(k) contribution and company match and the other replacing 2/3 of income -- in like terms, as in $X premium per $10,000 in benefits.

For example, if $0.22 gives you $5000 in disability income, the cost is $0.44 per $10,000. If $4.08 gives you $675 in disability 401(k) contribution and company match, the cost is $60 per $10,000.
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