While some people think of Walt Disney World as a place designed for kids, that’s not entirely the case. In fact, some parts of Disney World aren’t kid-friendly at all. The elegant, AAA Five Diamond Award-winning restaurant Victoria & Albert’s doesn’t allow kids under 10, and Jellyrolls — a dueling piano bar — is for vacationers 21 and up.
A trip to Disney World for couples or adult friends can be fun and worth taking. But even without kids to add onto trip costs, a Disney trip for two is not cheap.
The average cost of Disney World for two adults can easily top $4,000 for a seven-night trip, and that’s for frugal travelers. Couples who want to splurge on the fanciest rooms and restaurants, perhaps those traveling for a honeymoon or proposal — or those who simply want to travel in style — should budget at least $10,000 for seven nights.
A NerdWallet analysis sought to find out how much a trip to Disney World for two costs, accounting for line items across these four categories:
Park tickets (and add-ons, like Genie+).
On-property hotel room rates.
Food at park restaurants.
Add-on activities, like spa treatments and tours.
Because Disney offers options for a range of budgets, NerdWallet categorized the average cost of a Disney vacation for two into three price tiers: Value, Moderate and Deluxe (which is the same classification that Disney World uses for its hotels).
A frugal couple might be fine booking a Value hotel with minimal frills and only dine-at-counter service restaurants or carts. But other adults might purchase extras to improve the experience, like line-skipping privileges or larger rooms — all variations accounted for in the average price estimates listed below. Read more about NerdWallet’s methodology at the end of this article.
Here’s how much you should anticipate spending per day, per person (with hotel prices based on double occupancy), based on travel style:
One-day, one-park theme park ticket
One-night hotel room (Saturday night)
Individual meal
The average total Disney World cost for 2 adults
Here are NerdWallet’s estimates of a Disney vacation for two, broken down by travel style and length of trip:
Each Disney budget listed above assumes daily theme park tickets, three meals per day and overnight stays at a Disney-owned hotel with both travelers sharing one room.
Disney World ticket prices
Disney World ticket prices vary by park and date.
One-day Magic Kingdom Park tickets average $160, making it typically the most expensive of the four Walt Disney World theme parks. Magic Kingdom may be the most iconic and features romantic spots like Cinderella Castle (which might be ideal for a Disney proposal), but it’s also viewed as the most family-friendly park, which means more strollers to dodge.
Meanwhile, Epcot tends to be the cheapest Disney theme park — which is a plus given it’s often considered the best Disney World park for adults anyway. About half of the park is devoted to World Showcase, which consists of 11 mini subsections themed to a different country, including Norway, China and Morocco. Each serves up food and beverages (including alcohol), and some have rides, too.
Disney World price per person
One-day, one-park ticket advertised price range
$109 to $189.
Average one-day, one-park ticket price
Genie+ (add-on option for Moderate and Deluxe trips)
Starting at $15.
Disney World ticket prices drop the longer you stay. For example, five-day, one-park-per-day tickets average $643 (that’s $129 per day).
Optional Disney ticket upgrades include Lightning Lanes, which are priority queues for certain attractions, and Park Hopper tickets, which allow multiple park visits per day. Upgrades aside, here’s how much you should expect to spend on Disney tickets for two adults, based on number of theme park days:
Disney World hotels
The myriad of Disney-owned hotels offer options across price points. They range from Disney’s All-Star properties — which start at $128 per night, according to Disney trip planning website Touring Plans, and are considered Value properties — to Disney’s Grand Floridian Resort & Spa, which starts at $780 and is one of the most expensive Deluxe hotels.
Specific room rates vary based on check-in date and specific property, but here are average prices broken down by type and trip length, according to NerdWallet’s analysis:
Three nights
Seven nights
Even Disney’s cheapest hotel rooms are more expensive than what you might find elsewhere in the Orlando area. The average daily room rate across Orlando is just $186.49, according to Visit Orlando’s 2022 Travel Industry Indicators. That’s about 35% less than the $286 average price for the cheapest Disney resort.
Disney World food
NerdWallet researched average meal prices to find an estimate for the Disney World cost of food. Value meals consisted of an entree and drink, while meals placed in the Moderate or Deluxe tier (all served at table service restaurants with waitstaff) also included either an appetizer or dessert.
Here were average Disney World meal prices per person, based on restaurant tier:
Other activities and expenses
NerdWallet’s calculations did not factor in miscellaneous items and souvenirs, which you might want to account for when estimating your own trip to Disney World.
But NerdWallet’s seven-day trip estimations did consider other entertainment and activities, which are add-ons that Disney refers to as its “Enchanting Extras Collection.” They include scuba diving, golf lessons and dessert cruises aligned to sail during the fireworks. (NerdWallet did not add the costs of these extras for shorter trips, given that most people would be devoting their time to the theme parks).
Someone seeking a behind-the–scenes tour on a budget might book the $35, one-hour Behind the Seeds tour that takes you into Epcot’s fish farm and greenhouses. Longer and more expensive tours include the Animal Kingdom’s $199 Wild Africa Trek tour, which involves three hours of hiking, off-roading in a safari vehicle and traversing a rope bridge.
For couples taking seven night trips, here’s how much extra NerdWallet estimates you should budget for Disney World extras (for two people):
Value: $284.
Moderate: $443.
Deluxe: $911.
While not everyone will opt for these activities, many adult travelers might incorporate Disney Enchanting Extras in their budget for Disney World.
How couples can visit Disney World on a budget
Couples should expect to spend a minimum of $700 if staying on Disney property for one night and visiting the parks for one day.
For three-night stays (and two theme park days), costs inflate to a minimum of $1,800. And for seven-night stays with five theme park days, expect the trip to cost at least $4,000 if you’re low-frills. However, you might spend more than $10,000 across seven nights if you vacation like you’re keeping up with the Joneses. And that’s all before accounting for the cost to actually get there.
Here are some strategies for couples planning a trip to Disney World on a budget:
Book Disney Good Neighbor Hotels, which are hotels owned by other large hotel chains. Cash rates are typically cheaper than those at Disney’s own hotels, and they can sometimes be booked for free (assuming you have hotel points earned through frequent stays or credit card rewards).
Commit to Disney’s free mass transit. While families might require a rental car to use their own car seat, adults can get away with relying solely on Disney’s extensive transportation network of boats, monorails, buses and gondolas, which are free to use.
Don’t be afraid to order the kids’ meals. Particularly if dining at a counter-service restaurant, no one will know if you’re ordering a kids menu item to be consumed by an adult.
Methodology
To better understand what an average trip to Disney World for two adults costs, NerdWallet gathered more than 200 ticket prices, 550 Disney-owned hotel room rates and 100 additional activities and restaurant prices between April 2023 and April 2024. NerdWallet aggregated those figures to build sample trip budgets based on travel style and trip length and ultimately to determine how much a Disney trip for two costs.
NerdWallet’s trip costs start once you’re on property, thus don’t account for parking, airfare or driving costs. Here’s what’s included in each price tier:
Travel style
A budget-minded traveler seeking affordable options, few frills and little to no add-ons.
Someone price conscious but who occasionally splurges.
Someone who will pay top dollar to access the high end of what Disney offers.
Tickets (Disney World)
One-park-per-day tickets.
One-park-per-day tickets with Genie+.
One-park-per-day tickets with Genie+.
Hotels (Disney World)
Overnight at Disney’s Value hotels.
Overnight at Disney’s Moderate hotels.
Overnight at Disney’s Deluxe hotels.
Daily meals (Disney World)
Three meals (one entree and one beverage) at Value counter service restaurants or food carts.
Two Value meals plus one Moderate meal (one entree, one dessert or side and one beverage) at a casual, table service restaurant with waitstaff.
One Value meal, one Moderate meal plus one Deluxe meal at an upscale, table service restaurant with waitstaff.
Extra activities (Disney World)
Value add-ons, like cheap seats at Disney World’s Cirque du Soleil show or a lower-budget spa treatment (like an express pedicure).
Moderate add-ons, like central seats at Disney World’s Cirque du Soleil show or a grand pedicure at the spa.
Deluxe add-ons, like front-row seats at Disney World’s Cirque du Soleil show or a full-body massage at the spa.
Stateroom type (Disney Cruise Line)
Standard Inside.
Deluxe Oceanview.
Deluxe Oceanview with Verandah.
Daily meals (Disney Cruise Line)
No extra meals added.
One additional meal at Palo.
One additional meal and wine pairing at Palo.
Extra activities (Disney Cruise Line)
No extra activities added.
Moderate add-ons, like a spa day pass or snorkeling excursion.
Deluxe add-ons, like a spa day pass with massage or scuba excursion.
Because Walt Disney World ticket prices vary by park, one-day ticket prices were based on Magic Kingdom admission. Two-day ticket prices were based on Magic Kingdom and Epcot. In addition, NerdWallet’s analysis did not account for Park Hopper tickets, which allow access to multiple theme parks per day.
And of course, these budgets for the average cost for a trip to Disney should be used to estimate — rather than determine — your own Disney trip costs. Couples who pack their own snacks might spend less on Disney food. Meanwhile, those using their Disney trip as a shopping spree should account for souvenir costs, alongside other potential extras like PhotoPass.
(Top photo courtesy of Walt Disney World)
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2023, including those best for:
Prudential Financial, Inc, or Pru, has been in the financial services and insurance business for almost 140 years. The company has been helping both individual and business clients to both grow and protect their wealth throughout that time. Pru is considered to be one of the largest financial services institutions in the world, with operations in the U.S., as well as in Europe, Asia, and Latin America.
The company has for many years had one of the most recognized brand symbols across the globe, as “The Rock” – its icon of strength, stability, expertise, and innovation – is known by both investors and non-investors worldwide, as is the company’s long-running corporate slogan, “Get a piece of the rock.”
Ads by Money. We may be compensated if you click this ad.Ad
The Company and Its History
Prudential was founded in 1875 in Newark, New Jersey, by insurance agent John Fairfield Dryden. The company began in a basement office as “The Prudential Friendly Society.” The goal of Dryden was to make insurance coverage available to the working-class people, and it sold primarily industrial insurance – a type of coverage that provides burial and funeral coverage for low-income families. At that time, some of the policy premiums were as low as three cents per week.
Within just a few years, The Prudential Friendly Society expanded into Philadelphia and New York City, and its assets had reached $1 million. By 1885, the company had even sold its one-millionth policy. That year, the company’s name was also officially changed to The Prudential Insurance Company of America. It also adopted The Rock of Gibraltar as its company symbol.
Today, Prudential serves customers in 41 countries and territories, and it has roughly 47,000 employees around the world. The company holds approximately $1.176 trillion in assets under management.
Products Offered By Prudential
Prudential offers a variety of insurance and annuity products to both consumers and the business market. For consumers, the following insurance products can be found:
Term Life Insurance – Term policies provide “temporary” protection for a set period of time, such as for 10 years, 15 years, 20 years, or 30 years. This type of coverage can be quite affordable – especially if the applicant is young and in good health at the time that he or she is applying for coverage. If you are not in the best health and you feel a policy for life insurance with no exam is the best way to go for you, we can help find the best carrier for your needs. This is because term life provides only pure death benefit protection, without any type of cash value or investment build-up. Term life can be a good choice for those who are seeking to pay off the balance of a mortgage or other temporary needs, as well as for those who are looking for a large amount of death benefit protection but who do not have a large premium budget.
Universal Life Insurance – Universal coverage provides both death benefit protection, as well as a cash value component. The cash value is allowed to grow on a tax-deferred basis, meaning that no tax is due on the gain of the cash value until the time it is withdrawn. This means that the cash can essentially grow and compound exponentially over time. Universal life insurance offers policyholders a great deal of flexibility in that they can choose – within certain parameters – when they make their premium payment, as well as how much of that payment is allocated to the death benefit and how much of it is allocated to the cash value component.
Variable Universal Life Insurance – Similar to regular universal life, variable universal policies provide a death benefit and a cash value component, along with tax-deferred growth. However, the cash value component is tied to underlying market performance. This provides the policyholder with the ability to grow their cash even more – provided that the market performs favorably. Conversely, these policies can also be riskier if the market has poor performance.
In addition to life insurance, Prudential provides fixed and variable annuities. These products can help those who are either already retired, or those who are approaching retirement, to meet various goals. For example, those who are saving for retirement can participate in tax-deferred savings. Those who are seeking income can choose from a variety of different income options – including a lifetime option where they may receive income for the remainder of their life, regardless of how long that may be.
Prudential also offers additional types of insurance coverage products such as auto, home, RV, watercraft, and personal liability insurance, as well as retirement planning products and investment services to its customers in order to help them meet both their short- and long-term financial needs and goals.
Additional services that are offered by the company include the firm’s “Special Needs Solutions,” which address the unique concerns of parents who have children with special needs, as these families may require specialized life insurance and financial planning advice.
Financial Strength Ratings
Prudential holds strong ratings from the ratings agencies. These include the following:
A.M. Best
Standard & Poor’s
Moody’s Investor Services
Fitch Ratings
A+
AA-
A1
A+
Advantages and Drawbacks
While Prudential is a strong contender in the insurance and financial services industry, the company has both advantages and drawbacks. With that in mind, it is important to consider all of these prior to moving forward with the purchase of a policy with the company in order to ensure that the policy that you choose meets all of your particular coverage needs and goals.
On the plus side, Prudential provides a nice selection of term and universal life insurance products. These particular plans all have strong features – and because they are backed by Prudential, policyholders can be assured that they have coverage that is backed by an extremely strong life insurer.
In addition to providing very good policy rates to those who are in good health, Prudential may also offer favorable rates to those who are tobacco chewers, as well as to those who are cigar users.
In addition to the product positives, Prudential also has high rankings for its customer service. Representatives can be reached in several ways, including via phone or through live website chat. Reps can also be reached through Twitter, Facebook, and Google+. This makes it extremely easy for policyholders who need answers to their questions, or even for those who are researching whether or not to purchase new or additional coverage. Additional information can be found on Prudential’s customer service FAQ page on the company’s main website.
Unfortunately, even with all of the good, there are a few drawbacks to Prudential. First, those who are seeking whole life coverage are out of luck, as the company does not offer this type of policy. So, while universal life policies provide individuals with flexibility, not offering whole life to those seeking guarantees leaves out a potentially huge area of the marketplace.
In addition, those who may have adverse health conditions could have a difficult time finding coverage directly from Prudential’s online quote page. Therefore, in these instances, it is likely best to work with an agency or company that specializes more in higher-risk cases and who can provide more of a comparison shopping experience.
Annuities Offered by Prudential
Another product that is offered by Prudential is its retirement investments. One way that they do that is through annuities. Annuities are contracts that you hold with an insurance company (in this case, Prudential), and it’s a safe way to invest your money. Annuities are one of the most popular investments for people as they start planning for their retirement. The money is invested in a professionally managed portfolio, where it grows money tax-deferred. Once you retire, you can start receiving a paycheck to fund your retirement dreams.
If you’re going to purchase an annuity from Prudential, then you’ll be buying a variable annuity. Unlike a fixed annuity, the variable annuity could fluctuate depending on the investments inside of the annuity.
When you want to access your money, there are some restrictions on getting your hands on your investment money. If you want to start making withdrawals before you are 59 and ½, then you’re going to be subject to an additional 10% federal income penalty on top of the income taxes that you’ll already be paying.
How and Where to Buy the Best Life Insurance Coverage
To get the very best life insurance for your specific needs and goals – regardless of your particular health condition at the time of application – it is always a good idea to first make comparisons.
Just like the purchase of any other key product or service, you will want to make sure that you are obtaining the very best deal possible. This is a product that you are purchasing to protect the people who are most important in your life. With that in mind, you should expect it to be the very best – and that it be there for the long haul.
If you are ready to begin making life insurance policy and premium quote comparisons, my preferred partner is here to help. They work with many of the best life insurance companies in the industry today – and can help to provide you with all of the information that you need. They are also available to answer any of the additional questions or concerns that you may have.
When you’re ready to begin the process of locating the life insurance policy and premium that is best for you and those you love, use the form on the side of this page to run your own quotes and work with our preferred life insurance partner.
I understand that purchasing any type of insurance, such as life or health insurance, is a big decision, and we want to ensure that you have all of the information that you need before moving forward. So, feel free to contact us now – we are here to help.
From its variety of parks and bike trails to its fresh produce and amazing restaurants, Minneapolis is the place to be. Locals will quickly rattle off important facts about the town in which there’s always something new to discover. This includes places to eat and shop along with outdoor areas to explore.
Whether you need a new coffee shop, a new pub or a new place to take a walk, our expert locals have dished out their favorite spots. Where will you try first?
1. Harriet Island
There are plenty of outdoor spots to spend the day in Minneapolis. With the largest parks system in the country, there’s never a shortage of options for outdoor fun. But, with so many options, where to go can leave some locals unsure.
An outdoor spot big with locals for its picturesque views is Harriet Island. “It has amazing views of the river and the St. Paul skyline. The paddle boats along the river are fun to see, and you can make reservations to go out on them for dinner or lunch,” shares Jeannine Marie from Jeannine Marie Photography.
2. Lyndale Park Rose Garden
For a walk among the flowers, check out the Lyndale Park Rose Garden. This local gem is the second oldest public rose garden in the country. Jessica Strobel from Jessica Strobel Photography says the more than 3,000 plants make the garden feel “magical.” Plus, the spot is near the Harriet Lake bandshell, “where there is always something going on.”
3. Mill City Museum
“I enjoy St. Anthony Main and Mill City Museum for walking around in Minneapolis,” says Erin Johnson from Erin Johnson Photography.
The museum is a great spot, alongside Mill Ruins Park in Downton East. It sits right on the banks of the Mississippi River as well, so you’ve got plenty to see all around the area.
4. Greenway Bike Trail
When it comes to the best biking trail, the team from City Paws Pet Club suggests the Greenway Bike Trail. Stretching through Longfellow, and running parallel to Lake Street, this particular trail follows along a former railroad track.
5. Any local lake
Even with these specific spots, you can’t talk about the outdoors in Minneapolis without discussing the city’s lakes. Walking around any of them is a favorite pastime of Amy Lamphere, Founder of Storyline Collection. Walking lakeside is her favorite because she, “thrives on people-watching, and listening…and I get my steps in!”
6. Mr. Paul’s Supper Club
You’ll find fantastic food in every part of Minneapolis thanks to the foodie-friendly vibe throughout the city. But, locals will always have their favorites.
For those in Linden Hills, Ashley Becerra from Everyday Ejiji suggests grabbing a bite at Mr. Paul’s Supper Club. It has an, “absolutely amazing menu, unique NOLA eats and a killer cocktail list.” If you visit, she suggests you try the frozen French 75.
7. Sociable Cider Werks
When you’re craving a refreshing drink that’s crisp and clean, check out Sociable Cider Werks. This hot spot located, in Northeast Park, is a favorite of Devin Abraham from Once Upon a Crime Bookstore. It’s where you’ll find, “great drinks and atmosphere, and they have a delicious food truck on site.”
8. A day of dining in Minneapolis
Planning a whole day around food is certainly possible as well. For Julie Thornburg, Corporate General Manager at The Buttered Tin NE, finding the right is the key to a great day in Minneapolis.
“We would start the day at The Buttered Tin NE for a delicious breakfast, of course!” says Thornburg, “Then we would venture over to the Minneapolis Farmers Market to pick up some fresh goods. Throughout the day we would visit some of our local favorites: Kieran’s Food Building and Centro. For spirits, later on, we love Tattersall Distilling.”
This tour of hidden gems takes you through Northeast Minneapolis and will keep your belly full all day long.
9. Spyhouse Coffee
Josh Olson from J. Olson Weddings believes that every great day begins with Spyhouse Coffee. “My ideal day starts in the morning, spent with a friend, reading a book at Spyhouse Coffee on Nicollet.” This is a perfect stop for those in or near the Whittier neighborhood of Minneapolis, although the coffee shop does have other locations throughout the city.
10. Penny’s Coffee
A great spot for morning commuters trekking through downtown is Penny’s Coffee. Just ask Rachel, the Shop Manager at Anna Bé Bridal Boutique. “I have been obsessed with Penny’s Coffee lately. They have a great outdoor + indoor space with the best coffee, crepes and pastries.”
11. Hunt and Gather
There’s no shortage of hidden gems in Minneapolis when it comes to shopping, and locals all have different favorites. According to Max Zdon, from Corazon, the best thrift shop in town is Hunt and Gather in the Fulton neighborhood.
12. Southside vintage shops
Meghan Kujawa-Smith from Fox & Loon Photography prefers to hit up the vintage shops. They include Carousel and Folk and Southside Vintage in Standish and Tandem Vintage just a little to the south.
Discovering the hidden gems in Minneapolis
Seeking out those small, locally-owned spots throughout Minneapolis is a worthwhile endeavor. Make the effort to find these hidden gems and reap the rewards. Where you call home will impact what hidden gems you adopt as your own, but from outdoor fun to fine dining and stellar shopping, you won’t have any shortage of options in Minneapolis as you explore.
Lesly Gregory has over 15 years of marketing experience, ranging from community management to blogging to creating marketing collateral for a variety of industries. A graduate of Boston University, Lesly holds a B.S. in Journalism. She currently lives in Atlanta with her husband, two young children, three cats and assorted fish.
Hold onto your your design-loving britches, friends. We have the most gorgeous Retail Therapy of all time for you today!
You may remember us talking about The Line a couple of weeks ago; its online shop is gorgre, gorge, gorge, but its physical retail space is a concept that we’re quite confident is going to completely change the shopping experience for us all. Their “store” is styled down to the soap in the bathroom! like an actual lived-in apartment in NYC. And it’s actually IN an apartment in NYC. When we found out that you can walk through each room and shop straight from the comforts of that insanely gorgeous navy tufted suede sofa, or pull things directly out of their beautifully stocked closet, we had to see it for ourselves! Thankfully, our fab photographer Aubrie was headed to New York so we got her in there, pronto!
Be mindful: this isn’t any ole’ apartment, it’s crowned “THE Apartment”…of our dreams. We’ll leave you two alone for a minute…
Isn’t this space un-be-lievable?!
We could have filled this post with effusive descriptions of every detail, but really the images speak for themselves. From the jaw dropping massive Moroccan rug in the living room, to the provocative art in the bedroom and the ceiling-high tree branch in the bathroom, this “store” is truly a game changer. The idea of what shopping should look like will never be the same.
And you won’t believe that this is not everything!
That’s right. This Retail Therapy is so mind-blowing that we decided to break it up into three posts! The details in The Apartment are not to be missed and just WAIT until you see the closet! More to come my friends. More.to.come.
original photography for apartment 34 by Aubrie Pick
Income tax filing season is upon us and let’s admit it – there’s a certain amount of stress with the whole process. It may be related to the time and effort it will take to gather the necessary documents. Or fear that you may owe the IRS money. And if you’re preparing your return yourself, you may have some anxiety over the potential to make a mistake that could invite an IRS audit.
Those may or may not be legitimate concerns, but there are numerous financial benefits of paying your taxes early. Since the process of filing returns can be stressful in itself, the best strategy is to get the job done as quickly as possible, put it in the rearview mirror, and move forward with your life.
Even if you do expect to owe money, it’s almost certainly better to file early and get it over with. And who knows? You might even find you owe less than you thought. But if you let it ride until close to April 15th, you’ll be causing yourself a lot of unnecessary stress.
That’s why when it comes to income taxes, it’s almost always better to file and pay early.
What’s Ahead:
How early can you file your income tax return?
There’s probably no one in America who is unaware that April 15th is “tax day”. But that doesn’t mean you need to wait until April 18th to file.
The 2023 tax season officially began on January 23rd, when the IRS started accepting 2022 returns. This includes e-Files.
But unless your tax situation is fairly simple, you probably don’t start doing your taxes on the earliest filing date. Often, employers and other institutions are not required to provide important tax documents until after the start date. For example, the deadline for sending W-2s and 1099s was January 31st in 2023. Other 1099s, such as those that report interest, dividends, capital gains, and other investment transactions, were not required to be sent until February 28.
But as we all know, just because W-2s and 1099s are due out by a certain date doesn’t mean everyone complies. You may find yourself waiting into March for certain forms. It happens in the real world.
The financial benefits of paying your taxes early
I’m using the term “paying your taxes” because that’s almost certainly the main reason people delay filing their taxes until April 15. But there are plenty of other reasons you might be waiting until the last minute, including procrastination.
But whether you expect to pay, or you’re anticipating a refund, there are plenty of reasons to file – and, if necessary, pay – your taxes early.
Get your money early if you’re due a refund
According to the IRS, theaverage federal income tax refund in 2023 as of February 28th is $1,963.
That’s a nice chunk of money, and one too big to leave on deposit with the IRS, where it earns no interest. For that reason, you should want to get your tax refund as soon as possible. And in most cases, if you expect a refund on your federal income tax, you’ll probably be looking for one on your state income tax as well. That means more than $2,900 may be hanging in the balance.
The sooner you get your refund from the IRS and into your bank, the sooner you’ll be earning interest on the money – or putting the cash to some good use elsewhere.
Read more: 10 smart things to do with your tax refund
Give yourself more time to pay if you owe
It’s perfectly understandable to choose to wait until the last moment to file your income tax if you owe money (whether because of estimated tax or otherwise). But if you already know you owe, hesitation will only generate additional unneeded stress.
What’s more, there’s no need to panic if you owe the IRS money, even if you can’t afford to pay it. In fact, the IRS provides several options for paying overdue taxes. Once you get one of these payment methods in place, the stress will ease, and you’ll be able to freely concentrate on the business of getting your tax liability paid.
The IRS will help you pay your tax balance
The IRS provides no fewer than three options to pay your taxes if you get a tax bill:
When you file your taxes, you can contact the IRS and request additional time to pay your full tax balance. TheIRS will give you up to 120 days to pay your balance. You’ll need to contact the IRS to set this up, which is another compelling reason to file your return early.
If you won’t be able to pay the full balance within 120 days, you can also set up aninstallment payment agreement. The IRS will give you up to 72 months – a full six years – to pay your balance in full. However, interest and penalties will be assessed on the portion of the tax that has not been paid by April 18th.
If you’re unable to pay the full balance even with additional time or an installment agreement, you can also propose anoffer in compromise. You’ll need to make an application with the IRS, but you may qualify to pay a reduced tax balance if you can demonstrate a hardship. This may be approved if you’ve experienced a prolonged time of unemployment, the death of a loved one, a divorce, or a major medical event.
The critical element when you owe the IRS money is to file your tax return on time. Early is even better, since it will make it easier for you to set up a workable payment plan. That’ll be easier to do early in the tax filing season when the IRS is more likely to answer their phones or to respond to online applications for payment plans.
Reduce the likelihood of income tax refund fraud
Income tax refund fraud is one of the fastest-growing and least understood forms of identity theft. That’s in large part because it happens without the taxpayer even being aware of what’s going on – at least until an ominous letter arrives from the IRS.
If you’re expecting a refund, that letter will inform you that a large refund has already been paid under your name and Social Security number.
You don’t need to worry that the IRS is going to come after you for the fraudulent overpayment. They’re well aware of income tax fraud and have an entire protocol set up to deal with it. But it will take weeks or months to sort out, and that will mean your true refund will be delayed until the problem is cleared up.
To avoid the hassle and the delay – as well as the possibility of the fraud itself – you’ll minimize the likelihood of it happening by filing as early in the tax season as possible.
Income tax refund fraud usually takes place shortly after the IRS begins accepting returns for processing. If the fraudster has your name, address, and Social Security number, he or she can file a bogus tax return claiming a large refund.
The early filing by the fraudster is the key to the whole theft. The fraudster will be able to both file a fraudulent return and collect the refund before you file your legitimate return.
Read more:7 signs you’re at risk for identity theft
Avoid the last-minute tax crush – and the possibility of needing to extend
There’s something of a myth – which is one dreaded by tax preparers everywhere – of a taxpayer walking into a CPA firm or tax-preparation company the day before taxes are due and expecting to have the return filed by the next day. That’s something like doing your Christmas shopping on Christmas Eve. And trust me, it probably won’t work with tax filing either.
I spent many years working in CPA firms, and I can tell you categorically that’s not how tax preparation works.
Walk into a CPA firm at the very last minute and the most that will happen is your return will be extended.
In fact, many CPAs have a cutoff date that’s set much earlier. In some firms, it may be April 10th, but in others, it may be April 5th, April 7th, or even April 1st.
The reason is CPA firms and tax-preparation offices are swamped with last-minute tax returns as the 18th approaches. The higher the volume of last-minute returns, the earlier the cutoff date will be. You can forget about April 18th– your return will automatically be extended if you come in after the cutoff date established by the firm.
Like avoiding as many traffic jams as you possibly can, you should do your best to not take part in the last-minute tax-preparation crunch. And, if for whatever reason, it looks like you’ll be a late filer, your best choice will be to opt for tax-preparation software to get the job done yourself.
Warning: an extension to file your return is not an extension to pay your taxes
At a minimum, it will be important to have your return completed even if you need to file an extension. A completed or mostly completed tax return will let you know what your tax liability is.
That’s important because filing an extension only grants you the right to file your return by October 16th. But it does not give you an extension to pay your tax liability.
Being better prepared to file a complicated return
Next to apprehension over owing on your taxes, the biggest source of stress and filing delays is likely the need to file a complicated return. That may be the case if you’re self-employed, have a large number of investment trades, own investment real estate, or participate in multiple partnerships.
The document collection process for any of those return types is admittedly challenging. But that’s all the more reason to keep accurate records as well as know where to access important documents, many of which can easily be retrieved from online sources.
Delaying the preparation of a complicated tax return until April 15th, or even anticipating an extension, won’t make the problem go away. It’ll simply postpone it to a later date, which means you’ll spend more time stressing and worrying.
This can be especially problematic if you’re using the services of a paid tax preparer. The closer you get to April 15th, the more backed up paid tax preparers are, including CPAs.
Tax software can help you file the most complicated returns yourself
Don’t let that stop you from filing. There are advanced tax software programs that can help you prepare your tax returns yourself. And you can do it with a quality level similar to a return prepared by a CPA.
TurboTax is an excellent choice to self-prepare the most complicated tax returns. You can quickly and easily file even the most complicated returns, even getting help from a live agent as needed. That’s just a fraction of what you’d pay a CPA to prepare your return. And using the easy, step-by-step data entry process TurboTax employs will make the tax-preparation process easier than you might imagine.
They offer a 100% accuracy guarantee, the ability to prepare up to five returns with a single package, an audit support guarantee, an interface with QuickBooks, and – for an additional fee – live audit representation. For a complete list of the best options for filing yourself or with help, click the link below.
Read more: Best tax software for 2023
Summary
For the sake of your own sanity, file and pay your income taxes as early in the tax filing season as you can. Given all the tax preparation software that’s available – that’s both easy to use and low cost – there’s no reason to wait.
File as early as you can, get the task behind you, then go on with your life. Even if you expect to owe, a delay doesn’t eliminate the need to make payments. It only defers it to a later date and leaves you spending more time worrying.
Between tax software and e-filing, there’s no reason at all to put yourself through that.
In August 2020, Taylor Lopez and her husband Joseph bought their home for $180,000 in the fast-growing city of Anna.
They bought the three-bedroom house built in 1966 with a loan carrying a 3.8% mortgage rate. “From an investment standpoint, it felt like a good choice,” said Lopez, 36, a real estate manager for restaurant chain Wingstop.
Advertisement
Dallas-Fort Worth home sales, prices only take slight hit from higher mortgage rates
Advertisement
After more than two years in the home, they’ve been thinking about selling. Joseph works in Lewisville and Taylor works in Addison, so they would like to find a place offering a shorter commute.
D-FW Real Estate News
Get the latest news from Steve Brown and the business staff.
But, like many other would-be upsizers in Dallas-Fort Worth, the couple feels locked into their current home.
Although they could get a good return on a sale, they would have to shop in a dramatically more expensive housing market than when they first purchased and sacrifice their current loan for a new one at a much higher rate.
Advertisement
After a wave of low-rate homebuying and refinancing from 2020 to 2022, more than half of outstanding Texas mortgages have rates of less than 4%, according to Federal Housing Finance Agency data.
Since last fall, the average rate for a 30-year, fixed-rate mortgage has been hovering between 6% and 7%.
Advertisement
“There are people that want to sell, but that is what is keeping them there at their house,” said Misty Michael, a real estate agent in the Sachse and Plano area.
Advertisement
The Lopez family said any home they would want to buy, in school districts they want to be in and that wouldn’t require a lot of work, would start in the $400,000 range.
“It doesn’t make sense when you weigh out all the pros and cons, so we’re continuing to drive about an hour each way to work,” Lopez said. “We could always purchase a home at a higher interest rate, then refinance it if the interest rates go down, but that’s an if and when situation.
“When you’re playing with that much money, it doesn’t seem like a risk I’m willing to take right now.”
Advertisement
Changing math
Since the start of 2020, the median price of a single-family home in Dallas-Fort Worth has risen more than 50%, according to North Texas Real Estate Information Systems and the Texas Real Estate Research Center at Texas A&M University.
On top of that, the Federal Reserve has aggressively increased its federal funds rate for more than a year, indirectly driving up mortgage rates. Freddie Mac recorded an average 30-year mortgage rate of 6.96% on July 13.
Advertisement
The result: The monthly principal and interest payment for a median-priced Dallas-Fort Worth home at the average rate with a 20% down payment, before insurance or property taxes, was about $980 in January 2020. In June, it was more than $2,100.
For buyers who purchased a $300,000 home at the record low of 2.65% in January 2021, just buying a house at the same price again at today’s average rate would add almost $900 to their monthly payments before taxes and insurance.
Purchasing a bigger or nicer home would add significantly more to that already-elevated payment, so people with job promotions or babies on the way looking to upgrade to bigger homes may not find a good enough deal to justify it financially.
Advertisement
“It now is significantly more expensive to make these marginal changes that you might have been planning,” said Texas A&M economist Adam Perdue. He and his wife are expecting a baby soon and have considered getting a bigger home, but they too have a low rate on their home in Brazos County and don’t want to take on higher monthly payments.
While prices are declining slightly year to year, Texas A&M economists don’t expect them to return to where they were at the beginning of 2020. Rates are also expected to decline, but not back down to the record lows. Mortgage Bankers Association forecasts rates in the 5% range by 2024.
Still buying and selling
As mortgage rates rose and sellers held back, new single-family home listings in Dallas-Fort Worth dropped 22% between June 2022 to June 2023, limiting options for people looking to buy.
Advertisement
Buyers with an immediate need to move are still purchasing homes, and people continue to move to Texas from other parts of the country. Local home sales recorded in June were down only slightly from a year before.
“We have a ton of buyers that are wanting to buy a home,” Michael said, adding that buyers may choose to refinance later. “You have people getting married, having babies, kids going to college.”
More casual buyers without an immediate need to move may no longer be shopping, said Drew Kayes, who heads up homebuying company Opendoor’s operations in Dallas-Fort Worth and Houston.
Advertisement
“A lot of those folks right now are not in the market because they’re locked into a sub-4% rate, and that’s more of a luxury move than a necessity move,” Kayes said.
Jason Dickson, co-owner of North Texas-based Nuwave Lending, said while it may be hard for homeowners to leave their current home, it may be worth it for them to tap into equity they’ve built up during the pandemic to pay off credit card debt or auto loans.
“They’ll gladly sign up for the higher interest rate in the new house if they have the benefit of taking that equity and improving their overall financial position,” he said.
Advertisement
A silver lining
Nipun Gadhok, 31, doesn’t want to lose his 3% rate but hopes to purchase a new home for him and his girlfriend next year.
Gadhok, a development manager for the Nehemiah Co., a local firm behind residential communities throughout Dallas-Fort Worth, purchased his five-bedroom home in Fort Worth’s Augusta Meadows neighborhood in 2021.
Advertisement
He’s looking to buy a home along the outskirts of the metro area, potentially in one of his company’s developments on the east end of Mesquite. Knowing he has a rate he may never get again, he’s not planning to sell his Fort Worth house.
He intends to keep it as a rental property and is already renting out rooms to four other tenants. With mortgage rates causing many people to rent, that’s turning out to be a good side hustle.
“People are choosing to rent, they are not as much inclined to buy,” Gadhok said. “The rates really helped me out in the way that I’m not having problems with finding tenants.”
Read more stories about the D-FW housing market
Here’s how much profit Dallas-Fort Worth home sellers are making
Home sellers in North Texas are pocketing some of the highest gains on record, even though profit is down from last summer’s peak.
Apartments set to start construction this fall on Plano’s Haggard farm
Developers of Plano’s legacy Haggard farmland on the Dallas North Tollway are disclosing more details of a $70 million, four-story, 569,000 square-foot apartment project.
Dallas-Fort Worth tops Texas with a quarter of statewide home sales
Dallas-Fort Worth leads Texas in home sales with more than 27,000 properties trading in the second quarter.
Eating well is one of the small pleasures that I decided not to forego when I dug myself out of credit card debt. I’m a busy bachelor with an active social life and an absorbing job; I like food with a lot of flavor to it; and I live in a rural area without a lot of shopping or coupon options. These three things don’t usually go hand-in-hand with eating well or cheaply.
To meet my financial goals, I had to keep my food budget under $100 per month — that’s $25 a week to feed one or two people (since I often cook for dates and friends). It’s been a challenge. Luckily, in Texas and many other states, there is no sales tax on unprepared foods. Using a few simple strategies I managed to meet my goal and then some. I didn’t eat rice and beans for the entire month (unlike Morgan Spurlock), I don’t waste time digging through supermarket circulars, and I don’t spend hours in the kitchen every night. This is definitely the lazy man’s approach to groceries on a budget.
Here’s a quick rundown of my method:
I joined discount clubs at the supermarkets I frequented, and I gave them my real address. Kroger sends me coupons once a month.
I shop for fresh vegetables at the Farmer’s Market. Produce at our farmer’s market is literally half the price as the grocery store.
I have family members send me coupons. (This is also a great way to keep in touch with my grandparents, who don’t have email and who I don’t get to talk to all that often.)
Where it makes sense, I buy store brands to save money.
I make a large shopping run at the beginning of the month, and then only go to the farmer’s market for fresh vegetables during the rest of the month. If I don’t have an ingredient, I make something else. This forces me to get creative and use what I do have.
I plan my meals to use the same or similar ingredients. That way I can buy in bulk and I rarely have to get creative.
I buy staples in larger “family” quantities, and I also shop the short-dated bins for meats, which I usually grill immediately.
The most important thing by far has been getting creative with leftovers. I don’t let anything go to waste, and that’s saying something considering the quantities I buy.
For instance, I typically will buy a 12-pack of fresh thick-cut boneless pork chops at the grocery store near the beginning of the month. (I always compare prices between the butcher’s counter and the meat aisle — you’d be surprised how often the butcher’s counter is cheaper!) For the week after I grill, I have meals that feature pork chops: plain pork chops with various sides, pork chops on top of fresh salads, pork chop slices with barbecue sauce and cheese in a tortilla. You get the idea.
Another perennial favorite is taco meat. A frozen one-pound tube of ground turkey is $2. Taco seasoning from the bulk aisle is $5 per pound (though a pound will last longer than I’ll live!). Besides tacos, taquitos, and nachos, taco meat goes great on fresh salads or mixed with another side dish like beans and rice. That’s five or six meals right there without any repeats. The base ingredient is about $3 for those five meals.
Tacos use the same ingredients as a salad: olives, tomatoes, lettuce, and cheese. Soups, stews, and Spaghetti sauce are in the same category. I make my own spaghetti sauce to an old family recipe using canned tomato sauce and a pound of ground turkey. It freezes well, costs less than $5 to make in a batch, and takes only a minute to reheat. I generally make it once a month.
Don’t buy ingredients that work for only a single meal. A friend of mine loves an arugula salad that I make with lemon balsamic dressing, but I don’t make it for her regularly because you can’t really use the arugula before it goes bad.
On the other hand, one of the few products I buy from my grocery store’s produce section is bagged whole romaine hearts. They come three to a plastic bag for $3. Romaine hearts will keep for at least two weeks fresh in the bag, and it only takes a minute to wash and chop them into salad. (Use the entire heart, of course. Don’t peel the green leaves off. The paler parts are very sweet and juicy!) Don’t buy bagged, pre-cut lettuce — it’s soggy and unappetizing after less than a week.
Be careful with coupons. Make sure you carry a calculator (I use the one on my cell phone) to figure out if it’s really a good deal versus the store brands. You’ll usually find, like I do, that store brands are cheaper. On the other hand, you can find things are a better value — buying lunch meat in the re-useable containers has actually proven to be a good value because you can wash and keep the container. At my grocery store it’s more expensive to buy the containers than it is to buy the half-pound of lunch meat that comes in them!
It seems my grandparents’ lessons are always the best. “Waste not, want not.” I watch my neighbors’ trashcans and shake my head every week. I hardly throw out anything, but some of them seem to fill their trashcans to the brim with kitchen waste every week. How can you get rich (slowly or not!) if you’re throwing out that much food?
For more about eating well for less, check out these past articles at Get Rich Slowly:
Images by Jesse Michael Nix and desi.italy. This article is not associated with Lazy Man and Money, but you should visit his site anyhow.
Disability insurance is the most underrated type of insurance, and one that I routinely would see clients skip. Who ever thinks they will become disabled?
Hard truth – According to some statistics from the Council for Disability Awareness, 1 in 4 workers who are 20 years old will be disabled before they retire. That’s a shocking number for most people to consider. If you can’t perform your job, you can’t earn money, and that’s where a disability insurance plan can save the day.
The best disability insurance companies make it easy to get a quote online. Below you can quickly get a quote from top rated disability insurance companies we recommend, or keep reading to learn more about disability insurance and its uses.
Table of Contents
Quotes From Top Rated Disability Insurance Companies We Recommend
.pwrapperwidth:100%;margin:1em 0 2em.progressive-containerwidth:100%;border:2px solid #e8e8e8;position:relative;margin-top:-1px.progressive-container .prowdisplay:flex;flex-direction:row;flex-wrap:wrap;align-items:center.progressive-container .pcolumnflex-basis:100%;padding:16px!important.progressive-container imgwidth:100%;margin:10px auto.progressive-container ulpadding:0;font-size:12px;margin:0.progressive-container .company-ratingcolor:#1261c9;text-align:center;font-weight:400.progressive-container .summarypadding-left:16px.progressive-container .counterposition:absolute;top:-2px;float:left;left:-2px;background-color:#1261c9;color:#fff;padding:4px 6px;font-size:12px.progressive-container .counter.graybackground-color:#ededed;color:#000.progressive.blue-buttonfont-size:14px;text-align:center;width:100%@media screen and (min-width:577px).progressive-container .pcolumnflex:1@media screen and (max-width:576px).progressive-container ._25flex:5@media screen and (min-width:577px).progressive-container ._25flex:2.5.progressive-container ._50flex:5.progressive-container .lg-order-1order:1.progressive-container .lg-order-2order:2.progressive-container .lg-order-3order:3@media screen and (max-width:576).progressive-container ._25flex:5span.five-starscolor:#ffab00
#1
Quotes from the top disability carriers to ensure you find the best rates
Helps thousands of consumers apply for disability insurance each year
Rated Excellent on TrustPilot
Benefit terms range from 3 months to age 67
Choose your waiting period
Multiple riders add flexibility to your policy
#2
Benefit periods from as little as 2 years or all the way to retirement age
Family care benefit provides coverage for up to a year if policyholder has to take off work to care for a child, spouse, or parent
10% discount to business owners and an additional 10% to preferred occupational classes.
Offers the option of Full Coverage for Mental/Nervous disabilities or a 10% discount for a 2 year limitation.
Rated A (Excellent) by A.M. Best for financial strength
What is Disability Insurance?
The idea behind disability insurance is simple.
It operates similar to a traditional life insurance plan, but instead of paying out upon your death, it pays out if you become disabled.
Coverage for these plans can vary in the size. Just like with other kinds of insurance plans, every disability policy is different.
If you already know what you want and just want to browse different rates from several carriers, click here.
Some plans are going to replace 45 %of your income, while others are going to give more replacement at 65%.
The more replacement coverage you want, the more you’re going to pay for your plan.
The Differences with Workman’s Compensation
When an employee suffers an injury on the job, oftentimes their employer will compensate them through worker’s compensation.
It is important to understand the difference between disability insurance and worker’s compensation – because the two are not the same thing.
The key difference between workers’ compensation and disability insurance is that workers’ compensation (or workers’ comp) pays for injuries that are work-related. Employers will obtain workers’ comp insurance in order to pay for incidents that occur on the job.
If workers sustain injuries on the job, it is oftentimes up to the employer to pay for the person’s medical bills, as well as for the individual’s lost wages if the employee must take time off work because of the injury.
An employee who collects payment via workers’ comp will typically, however, not have a long-term disability, but rather a temporary injury from which he or she will soon return.
On the other hand, disability insurance pays for a percentage of a person’s earnings if the insured is not able to work due to an injury or illness – regardless of whether that injury or accident happened at work or elsewhere.
In addition, if the disability insurance policy is an individual policy (versus an employer-sponsored group plan), the insured will be covered under the policy regardless of who he or she is employed through.
According to the Council for Disability Awareness, less than 5 percent of disabling accidents and illnesses are work related.
This means that the other 95 percent are not – and that these other 95 percent are also not covered by workers’ compensation insurance.
What About Social Security Disability Benefits?
It can be extremely difficult to qualify for Social Security’s disability benefits. For example, Social Security will only pay benefits if a person is considered to be totally disabled. This means that the individual cannot do work that they did previously, nor can they do other jobs either.
In addition, the person’s disability must have lasted, or be expected to last, for at least one year or result in death.
An individual must also have collected enough work credits in order to qualify for Social Security disability benefits.
You can take a look at the 2019 Social Security Administration limits and rates for OASDI and social security here.
The number of credits will be dependent on the age that the individual is when he or she becomes disabled.
With that in mind, the importance of disability insurance becomes even more clear.
This type of insurance can provide you with the additional funds that you need to help pay living expenses – without the need to dip into savings, retirement assets, or worse yet – use credit – for the purpose of paying day to day bills until you are back on the job.
If Social Security deems that a person’s situation qualifies, there is still a five month waiting period before benefits are paid.
This, too, can create a financial hardship for many people in terms of paying living expenses – especially if there are added medical costs due to the illness or injury that has been suffered.
So, we know Social Security won’t give the money you need and workman’s comp probably won’t cover it, so now what?
This is why you should explore a private disability insurance policy.
Types of Disability Insurance
The two main types of coverage are long-term disability and short-term disability.
You can probably guess from the name, but short-term policies are designed to cover employees for a much shorter time, anything shorter than two years.
Long-term disability, on the other hand, is built for anything past two years. A long-term disability insurance policy could continue to pay out for the rest of your life if it’s needed but typically runs from 5-10 years.
Some of the common causes for short-term disability insurance include:
having a baby
a severe illness
a major injury.
Long-term disability could include a lot of things, but some common causes are:
cancer
muscular disorders
cardiovascular complications
or serious injuries
Long-Term Disability vs. Short-Term Disability
Aside from the obvious, there are a few key differences between long-term disability and short-term disability.
One of those is the waiting period for a payout.
With short-term, policyholders can start receiving weekly checks as quickly as a 1 to 7 days after you file a claim for the policy.
With a long-term disability insurance policy, on the other hand, it can be anywhere from 90 days to 180 days.
If you’re looking at the cost difference between the two plans, short-term policies are going to be significantly more affordable than its long-term counterpart. Long-term plans can give you years more coverage which could translate to thousands and thousands of additional coverage from the insurance company.
Another key difference between the two kinds of plans is how you can get the coverage.
A lot of companies offer their employees short-term disability insurance, but almost no companies have a long-term disability insurance program.
If you want to get the long-term coverage, you’ll have to purchase a plan through a private insurance company. If your company offers any type of short-term disability insurance, you should always enroll in the program.
Group, Individual, Multi-life
Inside of the two main types of disability insurance are several “sub-types” of coverage.
One of those is group coverage.
These are policies which are offered through an employer and are offered to all the employees. Group coverage could be either short-term disability or long-term disability.
Employer-sponsored short-term plans are designed to pay for any disabilities which occur outside of the workplace. Short-term disabilities are much more common than long-term disabilities which could impact you for the rest of your life.
Individual Disability Insurance
If your company doesn’t have any sponsored plans, you can purchase a private policy through an insurance company.
You’ll be required to answer some medical questions and depending on the plan, take a medical exam.
Multi-Life Disability Insurance
When you’re shopping around for a disability insurance policy, you’ll probably come across plans being sold as “multi-life plans.”
The idea of these plans is to get several key people in a business (think of several doctors in a practice) to all apply at the same time with their plan.
The insurance company markets these policies as multi-life so they can offer simpler underwriting processes and pass some of the savings onto the policyholders.
Is Group Disability Enough?
For the employees who are lucky enough to get disability insurance through their employer, you still might be lacking. Just because you have a plan through your job, it might not be enough.
Let’s say you’re not able to go to work because of an accident. You can’t get to your job and pull in your paycheck, are you going to be able to pay for all of your monthly bills without having to make any extreme sacrifices.
To determine if your group disability insurance is enough, you’ll need to do some basic math.
Look at your plan and see how much coverage it provides.
For this example, let’s say it pays 50% of your salary. Now, take a look at your bills and expenses.
If the total of those numbers is more than 50% of your income, then your group disability isn’t enough.
If you’ve crunched the numbers and came to the jarring realization your group plan isn’t enough, the best choice is to purchase an additional individual plan.
Both of the policies can work together, and your individual plan can pick up the slack left behind.
What’s the Difference Between Owner-Occupation and Any-Occupation?
One of the most important things to understand about disability insurance plans are the differences between an owner-occupation plan and an any-occupation plan.
They may sound the same, but they completely change how your plan operates and the coverage it will give you.
First, let’s look at owner-occupation (sometimes called own-occupation protection). Policies with this protection will only pay out if you can no longer to the duties and tasks required to you by your job.
If you’re an electrician, but you can not do the simple tasks required on a day-to-day basis, then an own-occupation plan will pay you the benefits.
Any-occupation policies will only pay the benefits of the plan if you can no longer perform any occupation based on your education and work experience.
As you can tell, any-occupation policies have much stricter rules on the circumstances in which they will pay the policyholder.
Type of Disability Insurance
Description of Disability Insurance
Short-term disability insurance
Provides coverage for a limited period of time, usually up to 6 months, and replaces a portion of your income if you are unable to work due to illness or injury.
Long-term disability insurance
Provides coverage for a longer period of time, typically until retirement age, and replaces a portion of your income if you are unable to work due to illness or injury.
Group disability insurance
Provided by an employer as part of a benefits package, group disability insurance offers coverage to all employees and may be offered as short-term or long-term disability insurance.
Individual disability insurance
Purchased by an individual, this type of disability insurance offers customized coverage and can be either short-term or long-term disability insurance.
Own-occupation disability insurance
Offers coverage if you are unable to work in your specific occupation due to illness or injury, even if you are able to work in a different occupation.
Any-occupation disability insurance
Offers coverage only if you are unable to work in any occupation due to illness or injury.
Residual disability insurance
Offers coverage if you are able to work but have a reduction in income due to illness or injury.
How Much Does Disability Insurance Cost?
Now for the part everyone wants to know, how much is a disability insurance plan going to cost you?
Well, there are a lot of different factors which are going to affect how much the premiums are. It’s difficult for me to give an exact number without knowing your exact situation.
For example, the age of the applicant is going to play a major role in the premium rates. If a 25-year old applies for a policy, it’s going to be significantly cheaper than a plan for a 45-year old.
The general rule of thumb for disability insurance is the premiums are going to be anywhere from 1% to 3% of your gross income.
If you are making $100,000, you can budget for $1,000 – $3,000 every year.
As I mentioned, there are dozens of different factors which will completely change how much you pay.
If you’re a smoker, then you’re going to pay much more for your plan.
If you have a riskier job, you’re going to pay more.
The rule of thumb is exactly that.
How Much Disability Insurance Do You Need?
I alluded to the amount of disability insurance earlier in this article, but now let’s take a hard look at how much coverage you should have.
Not having enough disability insurance protection could cause some serious financial strain if something were to happen.
First, let’s look at your living expenses. If you don’t already have a budget, take some time to look at all of your monthly bills (power bill, water bill, mortgage payment, etc.) and your spending (groceries, gas, etc.).
On top of those monthly expenses, add in a few “unexpected” bills as well. You never know when something is going to break or an extra bill is going to pop up.
You want to have some cushion in your budgeting. Otherwise, you end up living paycheck-to-paycheck.
After you have the monthly expenses number, you can do some subtracting.
If you aren’t working, your expenses are going to look very different than they do now. For example, if you aren’t driving to work every day, you probably won’t be spending as much on gas.
You won’t be spending money on work clothes, and you will probably cut out some additional “entertainment expenses” as well.
Now you have a new number, your monthly expenses minus some tweaks.
The next number you want to add to the equation is any income you’ll make from other sources besides your disability insurance plan.
This category can include any money from your investments, money from your spouse or partner’s job (or a second job if they decide to add another job) and any additional disability income you may qualify for.
If you’re the main income earner in your home, then having disability insurance is one of the most important purchases you can make.
Key Man
For most people, they purchase disability insurance for their family and loved ones. for others, they buy a plan to protect their business.
If you’re one of the foundational workers in your business (ex. an owner, CEO, etc.), then you should consider buying a disability insurance policy for your company.
Key man plans operate a little differently than a traditional disability policy. With these policies, the business pays the premiums for the plan, and if something were to happen to you and you couldn’t perform your job, then the business is going to get the money from the payout.
These policies are a way for the companies to protect themselves against financial struggles if a key person in the business were unable to work because of illness or injury.
The company can use this money to outsource those duties or to hire someone to replace the key person while they are out with the disability.
Disability Insurance for High Income Occupations
There is a certain group of people which disability insurance could have some serious problems.
If you are a high-income earner, the standard disability insurance policy simply may not be enough. Just about every insurance company which sells one of these plans is going to have an income limit.
Regardless of the percentage they replace, they are not going to offer more than that limit.
Typically, these are doctors or lawyers who own their own firms, for example.
Some policyholders may find the insurance company’s limit is below the 60% they offer in income insurance.
If you’re one of these people, there are some things you can do to get the protection you need, regardless of how much money you make every year.
One option is to choose a company who offers higher limits. Each company has different coverage limits on their policy. We can help you shop around until you find one with a high enough limit for your needs.
Another route is to buy two separate plans from different companies. Sure, you’ll pay more in premiums every month, but you’ll have the protection in place if you ever need it.
Where to Get a Disability Insurance Quote
You now know the basics of disability insurance coverage, it’s time to go out and find a policy of your own.
There are more than 40 insurance companies which sell these plans. As I mentioned, they are all different. Some are going to have higher limits, offer a larger percentage, or have cheaper rates.
You need to find a company which suits your needs.
Before you pick a company, compare the rates and plans from several companies. You don’t buy the first house you see, why would you buy the first policy you find?
Sure, you can use your own time to contact those 40+ companies individually, or you can use a tool which will do the dirty work for you.
If you’ve decided you want to get disability insurance or supplement the coverage you already have from work, check out PolicyGenius. They are one of the few companies out there which can gather quotes from dozens of companies for disability insurance, all in one place.
PolicyGenius allows you to tailor your quotes to exactly the kind of policy you’re looking for; the perfect amount of coverage with the proper waiting period.
They know shopping for insurance isn’t easy, but they make it as quick as possible.
FAQs – Best Disability Insurance Quotes
How can I get the best disability insurance quotes?
To get the best disability insurance quotes, it’s important to shop around and compare policies from different insurance companies. You can request quotes online or by speaking with a licensed insurance agent. Be sure to provide accurate information about your occupation, income, and health to receive an accurate quote.
What factors can affect the cost of disability insurance?
The cost of disability insurance can be affected by several factors, including your age, occupation, health status, and the type and amount of coverage you select. Policies with longer benefit periods or more comprehensive coverage may be more expensive.
How much disability insurance coverage do I need?
The amount of disability insurance coverage you need depends on factors such as your income, monthly expenses, and savings. A general guideline is to have enough coverage to replace 60% to 80% of your income, but this may vary depending on your individual circumstances.
Lincoln Financial Group is a large insurance and financial corporation. It is a Fortune 500 company that provides a very diverse array of financial services and solutions to its business and consumer clients. The company has in excess of 9,000 employees and it is headquartered in Philadelphia, PA.
The name Lincoln Financial Group is actually the marketing name for Lincoln National Corporation, as well as its affiliates. The company’s shares actively trade on the New York Stock Exchange under the symbol LNC.
History
Lincoln Financial was founded back in 1905 – and it has thrived and grown throughout the past century. Today, the company holds very strong positions in the financial services industry, being #232 on the 2014 Fortune 500 list in terms of company revenue, and #26 in terms of assets. Lincoln is also listed as #218 on the Barron’s 500 2014 list for the most growth in revenue, as well as for the most cash returns.
As of the third quarter 2014, Lincoln Financial reported to have $215 billion in assets under management, with total adjusted statutory capital of roughly $8.3 billion. This places the company in a solid fourth place for all life and health insurance companies by revenue. However, Lincoln is ranked #1 for both total life insurance sales, as well as for variable universal life sales, according to LIMRA’s YTD rankings as of June 30, 2014.
Products Offered By Lincoln Financial
Lincoln Financial Group offers a wide variety of financial and insurance products for both businesses and consumers. These include life insurance, annuities, long-term care solutions, employee benefits, workplace retirement plans, group insurance, and executive benefit plans.
On the individual life insurance side, Lincoln provides the following options:
Term Life – Term life is typically purchased to provide “temporary” coverage. This type of policy can be obtained for one year, five years, ten years, or longer. It is considered to be the most economical form of coverage. This is because term life provides only death benefit protection, with no cash value build up or investment component. Lincoln Financial offers three different level term options to choose from.
Universal Life – Universal life insurance provides insureds with the benefits of traditional coverage. This means that they have death benefit protection, along with cash value. This cash grows on a tax deferred basis, meaning that there are no taxes due on the growth until the time of withdrawal. With universal life, policy holders have the opportunity to grow cash over time at a set rate, yet the flexibility to set the amount and the timing of their premium. Policy holders can also set the amount of their death benefit – within certain guidelines – when the policy is in force. Lincoln has several different Universal Life products to choose from, including the Lincoln LifeGuarantee UL, the Lincoln LifeCurrent, and the Lincoln LifeReserve.
Index Universal Life Insurance – Similar to regular universal life, index universal life also allows funds to grow tax deferred. However, growth is tracked by the performance of an underlying index such as the S&P 500 or the Dow Jones Industrial Average (DJIA). Lincoln offer several index universal plans, including the Lincoln Treasury Indexed UL, the Lincoln LifeReserve Indexed UL Accumulator, the Lincoln LifeReserve UL Protector, and the Lincoln WealthPreserve Survivorship Indexed UL.
Variable Universal Life Insurance – Variable universal life insurance offers flexible death benefit coverage, along with growth potential in the cash value component of the policy. The potential to grow the cash over time is based upon market performance of an underlying portfolio of “subaccounts.” The funds, however, are not invested directly in the market. It is important to note, however, that while variable life can offer the opportunity to grow funds due to market performance, the potential for poor market performance can also make this type of policy more risky. Lincoln Financial offers several options for variable universal life insurance. For single life plans, it offers the Lincoln AssetEdge VUL, the Lincoln AssetEdge Exec VUL, and the Lincoln VUL ONE. There is also a Survivorship Life option. These plans include the Lincoln PreservationEdge SVUL and the Lincoln SVULONE.
Lincoln Financial also provides a life insurance option as an alternative funding mechanism for long-term care expenses. This can allow an individual or a couple to forgo the expense of having to purchase a stand-alone long-term care insurance policy and instead just use the funds that are inside of a universal plan. This can essentially provide the policy holder (or policy holders) with the benefits of universal life and long-term care insurance combined.
It also helps to eliminate the worry of “not using” long-term care insurance policy benefits that are paid for over many years, but never utilized. Instead, this option provides coverage for long-term care expenses if the person needs it – but if they don’t, it offers either a death benefit or a return of their initial premium if they don’t.
Company Ratings
Lincoln Financial is a solid performer in terms of financial strength – and it has the ratings to show it. The company has received very strong marks from the ratings agencies:
The Lincoln National Life Insurance Company
Lincoln Life & Annuity Company of New York
A.M. Best
A+ (2nd highest of 16)
A+ (2nd highest of 16)
Standard & Poor’s
AA- (4th highest of 22)
AA- (4th highest of 22)
Moody’s Investor Services
A1 (5th highest of 21)
A1 (5th highest of 21)
Fitch Ratings
A+ (5th highest of 19)
A+ (5th highest of 19)
Advantages and Concerns
There are a number of advantages to going with Lincoln Financial as your company of choice. First, this financial services giant offers a nice variety of both term and universal policies, along with a very wide selection of optional policy riders to choose from. So, even though the company does not provide a whole life insurance option, there are a lot of other choices that can meet most other needs.
Lincoln also offers other popular policy features such as a no-exam term conversion (for those who qualify), as well as a level premium guarantee on its term life insurance plans, and access to the cash value on its universal life policies. It does not, however, offer a dividend option with paid-up additions.
The company is also very solid in terms of its financial backing and strength. Across the board, the financial rating agencies have provided Lincoln with strong marks. That, coupled with the company’s century old history, should give policy holders confidence that Lincoln will likely be there when they need them.
Unfortunately, no matter how nice the variety is in a company’s product selection is, it is always a wise plan to get more than just one policy quote before making your final purchase choice. Just like choosing a car or a computer, you wouldn’t just look at one and agree to the sticker price without first doing some comparison shopping.
When searching for life insurance, it is likely that the proceeds will be used for paying off large debt, replacing income, or some other important purpose in which survivors will rely. With that in mind, you will want to ensure that the amount of proceeds is correct, the premium is within budget, and the company is secure. To help protect your family further, looking into Burial Insurance is also a good choice.
Finding the Life Insurance Coverage That Meets Your Needs
If you are ready to begin searching for the right policy for your specific needs, we can help. We can assist you in several different ways. First, we can help you in determining the right type of coverage. In other words, is term, whole life, or universal life the proper coverage type for you? Next, we will also walk you through determining the proper amount of coverage for your needs.
Coming up with the right dollar figure can be daunting at times – especially if projecting out into the future. My preferred provider can help you in coming up with the coverage that can help get your loved ones through the tough times. Get started with your own set of quotes by filling out the form on the side of this page.
They will also help you in reviewing the many different life insurers in the market place in order to find the one that is best for you. Root Financial works with the best life insurance carriers in the industry today, and can get you all of the important information that you need in order to make the right decision. Complete a major part of your personal finance plan today by getting quotes and coverage. We also have great tips for other insurance covers out there too, check out our post on the Best Auto Insurance Companies!
Us Weekly has affiliate partnerships so we may receive compensation for some links to products and services.
Amazon Prime Day 2023 is a stellar opportunity to elevate your space. If you’re constantly saving home decor Reels on Instagram and consistently updating your home decor boards on Pinterest, it’s finally time to join in on the fun!
These Prime Day home decor finds earn an A+ in aesthetics. They’re the most Instagrammable pieces in the sale, and they’re all linked for you below! Remember to also check out our live Prime Day updates for more great deals!
LDGOOD Willow Vine Lights
LKGOOD
Was $43On Sale: $34You Save 21%
See it!
Wild Autumn 96-Pc Dried Pampas Grass Bouquet
WILD AUTUMN
Was $27On Sale: $16You Save 41%
See it!
Livebox Retro Sun Round Rug
LIVEBOX
Was $74On Sale: $59You Save 20%
See it!
Mkono 2-Pc Macrame Woven Wall Hanging
Mkono
Was $28On Sale: $20You Save 29%
See it!
BSOD Mushroom Lamp
BSOD
Was $42On Sale: $29You Save 31%
See it!
Omiro Decorative Wall Mirror
OMIRO
Was $27On Sale: $13You Save 52%
See it!
Yopyame 50-Pc Boho Collage Kit
Yopyame
Was $19On Sale: $9You Save 53%
See it!
Pxbniuya 200-LED Hanging Sphere Lights
PXBNIUYA
Was $18On Sale: $13You Save 28%
See it!
Base Roots Moon Phase Wall Hanging
BASE ROOTS
Was $30On Sale: $13You Save 57%
See it!
Rhapsody Studio Ceramic Vase
Rhapsody Studio
Was $39On Sale: $29You Save 26%
See it!
Aokala Scented Bubble Candles
Aokala
Was $10On Sale: $6You Save 40%
See it!
Recutmns Ivy Fake Vines, 24-Pack
RECUTMS
Was $25On Sale: $20You Save 20%
See it!
EGR Sunset Lamp Projector
EGR
Was $25On Sale: $12You Save 52%
See it!
Bamfox Hanging Wall Shelves
BAMFOX
Was $33On Sale: $26You Save 21%
See it!
Kazova Stripe Arch Wall Decal
Kazova
Was $40On Sale: $28You Save 30%
See it!
Joytezz Tufted Coasters
Joytezz
Was $17On Sale: $12You Save 29%
See it!
Home Smile Leaf Trinket Dish
HOME SMILE
Was $15On Sale: $10You Save 33%
See it!
Looking for something else? Explore all Prime Day deals here!
Not done shopping? See more of our favorite products below:
See more Us Weekly Shopping
21 Loose Summer Dresses That Won’t Stick or Cling to You in the Heat
The Best Nordstrom Anniversary Sale Beauty Deals
Recreate ‘Barbie World’ Rapper Ice Spice’s BET Awards Look With Dyson Hair Tools
This post is brought to you by Us Weekly’s Shop With Us team. The Shop With Us team aims to highlight products and services our readers might find interesting and useful, such as wedding-guest outfits, purses, plus-size swimsuits, women’s sneakers, bridal shapewear, and perfect gift ideas for everyone in your life. Product and service selection, however, is in no way intended to constitute an endorsement by either Us Weekly or of any celebrity mentioned in the post.
The Shop With Us team may receive products free of charge from manufacturers to test. In addition, Us Weekly receives compensation from the manufacturer of the products we write about when you click on a link and then purchase the product featured in an article. This does not drive our decision as to whether or not a product or service is featured or recommended. Shop With Us operates independently from the advertising sales team. We welcome your feedback at [email protected]. Happy shopping!