I don't use Slack, but please help me understand why you find Disability Insurance less important protection than Life Insurance. They are both about protecting the (insured) family from a catastrophic loss of income. IINM a person has about a 3 x chance of getting disabled before retirement age vs. dying. Regardless, the risk is there, and both life and disability insurance are about protecting the income that is being produced by the working person.
I also take issue with your 25x living expenses, once you figure out that the income generated by the capital is taxable, what safe rate of return are you earning on the death benefit to adequately cover the family? What about changing needs?
Lastly, it is extremely important to have a periodic review of coverage (and overall plan) to make sure it matches the current situation, goals, and objectives.
You say "disability" is 3x as common as dying before retirement age.
The term disability can include many different things.
It's not clear if your statistic above, refers to a permanent disability that is as financially catastrophic to the insured's family as death i.e. that prevents the person from earning any income through retirement OR includes shorter term disability too, that is less catastrophic?
Here is an informative article that challenges the statistics on disability claims:
https://www.nytimes.com/2010/02/06/your-money/life-and-disability-insurance/06money.htmlAnd an associated graphic:
https://archive.nytimes.com/www.nytimes.com/imagepages/2010/02/06/business/06money_g.html?action=click&module=RelatedCoverage&pgtype=Article®ion=FooterOn a practical level, premiums of all insurance products are designed to be in the favor of the insurer. In addition most people can't afford to insure against everything (dollars available for spending on insurance is limited), and you can't insure against every possible loss, (such an extended loss of income from being laid off), so it makes sense to
prioritize insuring against financially catastrophic events using life insurance
ahead of what is
usually a less catastrophic loss (albeit it still a potentially significant loss) like a limited-period of disability.
P.s. If you have credibly sourced data on the odds of a disability that leads to loss of income for more than 1 year, 2 years, 5 years, 10 years, that would be appreciated.
ChatGPT says "It's challenging to provide specific odds for a long-term disability that leads to an inability to earn income for multiple years, as this can vary greatly depending on numerous factors. These factors include your age, overall health, occupation, lifestyle, and the presence of any pre-existing medical conditions. Certain occupations may have a higher risk of disabilities, and some health conditions can increase the likelihood of a permanent disability." and "It's important to note that the eligibility for long-term disability benefits often depends on the specific terms and conditions of the insurance policy or government program. Additionally, the severity and impact of the condition on the individual's ability to perform substantial gainful activity are key factors in determining eligibility for disability benefits."