You have to make a choice between two jobs. They are both attractive in many ways – work you like to do, short commute, great people to work with, Starbucks right next door (that’s high on my list). The only difference is in the compensation packages offered:
Job #1 is offering you $120,000 annual income with semi-annual cost of living reviews.
Job #2 is offering you $116,000 annual income with semi-annual cost of living reviews. Additionally, if you were to become disabled, you would still receive $5,500 per month (with annual cost of living increases), tax-free, for as long as you are disabled (up to age 65).
Which job would you choose? If you answered #2, you have made a wise choice. It’s basically job #1 with one difference – you have purchased an individual disability insurance policy.