short and long term disability

[LivingAlmostLarge]

Who buys their own short and long term disability insurance? I asked before at DH work and they provided the maximum 80% LTD and STD insurance so when I went to buy more privately they couldn't sell it to me. Is this common?

[Gailete]

I think the 80% is normal and if it is being paid out of a paycheck, it is not taxes or has SS/MC taken out. It is clear money and actually a bigger check most likely than his regular take home. I they allowed people to buy more than that, they would have tons of scammers pretending to have whiplash and all sorts of problems that can't be seen on x-ray, just to get a check every month that pays more than going to the office/plant/ whatever daily.

MY DH had it himself when we first married and I was paying the check out each month and it seemed a high amount and then I read the fine print to see what he would get each month. He is self-employed and his income is erratic and has only gotten more so. I figured at the most he would maybe get $400/month and it would most likely take months to prove how much he earned per month. It just wasn't affordable in the long run. If someone is making a substantial amount of money and it is easily proven and the premium is reasonable, then yeah go for it if you can on your own if not getting it via work. If you get ST or LTD through work there may be tax consequences unless the whole premium is paid by the insured.

[Like2Plan]

If you get ST or LTD through work there may be tax consequences unless the whole premium is paid by the insured.

Depending on your employer, there may be a third option. That is the employer can pay the premium and you pay taxes on the premium (the cost of the premium is counted as income). DH's employer offers it both ways. If you don't pay taxes on the premium, the benefit would be taxed.

[disneysteve]

I've carried my own LT policy since internship about 26 years ago. My job never offered coverage.

My new job actually does. It's $21/pay for 66.66% of salary.

I'm not really sure how that would work if I had to file a claim. I doubt that I could get both policies to pay out. They'd probably argue with each other over who had primary responsibility.

The problem is that even though I now have coverage through work, I don't want to cancel my personal policy because if I ever leave this job, I'd be screwed. I wouldn't be able to replace my personal policy. So I'm kind of stuck paying for both. I might look into opting out of the work policy.

[tripods68]

I carry just regular SDI through work which pay 55% of my gross salary with 7 days waiting period.

I used to have extra layer of short term disability and LT insurance through New York via work eventualy cancelled once we built our $30K emergency fund.

[Gailete]

Steve, seem like both policies should pay out since if I understand right you are working two jobs. The one that pays the premium for you should pay out for that job and that other policy for that job. Of course, to know for sure is to call them both to find out.

[disneysteve]

Steve, seem like both policies should pay out since if I understand right you are working two jobs.

I no longer have two jobs. Since 9/30/17 I've been full time at one job only.

[Gailete]

I thought you had moved down to one job. But I see your point about keeping your own private policy. I'd rather have too much insurance and not be able to use it all than to have none or not enough.

Sort of like malpractice insurance. I had my own policy from the days that I was a nursing student until 7 years after I last worked one on one with patients. I think that was the look back time for lawsuits and being as my last clinical job was at a prison, the last thing i want was to be sued by those dudes! But it meant I was still paying for insurance after my nursing license had lapsed - couldn't afford it and knew I could never go back.

[disneysteve]

Sort of like malpractice insurance. I had my own policy from the days that I was a nursing student until 7 years after I last worked one on one with patients. I think that was the look back time for lawsuits

When I left my practice in September, I had to buy a tail coverage policy. That ran me about $15,000 but covers me for the statue of limitations for any suits that could arise from the time I worked there. I hated to spend the money but it is absolutely necessary so I didn't hesitate to do it.