Long term and short term disability?

Question

Is there any reason why you should not take long term and short term disability from your employer. Can you get money from the state if you are out of work due to a non-work related injury or anything like that or are you basically out of luck.

Thanks

Answer 1

Hello there,

In my experience, the employer sponsored disability insurance for short term would only cover the difference between what the state paid, and your annual take home salary.

In the state of CA for example, the short term disability offered through the state of CA only covers 66 2/3% of your annual take home salary as reported on your tax statements.  Therefore, the supplemental disability that's offered through your employer covers the remaining 1/3 of your annual salary.  There's really not a way to make more money than that.

If you have long term total disability, you are generally required to apply for permanent disability through the Social Security Administration.  

I hope this information is helpful, if you have any more questions, let me know.

Good luck!

Kathy K

www.premiumwatchdog.com

Answer 2

It is a good idea to have your own disability insurance.  The state and federal disability are not enough money to live on.  Your own separate policy will give you money on top of the money you get from them.

Answer 3

Depends on the state you are in. New York, New Jersey, Rhode Island, California, and Hawaii all have state sponsored disability for non-work related injuries and illnesses. Most are for 6 months I believe, but I know Ca. runs for up to a year.

Answer 4

The only reason not to take it is if you have an individual plan that is better.   The statistic may be different with the current mortgage fiasco, but prior to that for sure disability was the number one reason for disclosure.

oh...and you'll get nothing from the state...  Social Security also doesn't start until after one year and they decline something like 90% of applicants.