Comments on: Do You Need Short Term Disability Insurance?

By: Motorcycle Insurance Minimums – Forget State Requirements

Motorcycle Insurance Minimums – Forget State Requirements — Thu, 15 Dec 2016 05:57:55 +0000

[…] Who needs disability insurance? You do if you engage in “high-risk” activities. Considering the severe consequences of a motorcycle accident, I’d say that’s high risk. […]

By: Ms Xochi

Ms Xochi — Wed, 05 Mar 2014 18:44:11 +0000

Thank you for this information. I am opting out of STD this year. I calculated the years and I am at 12.5. Not planning on getting pregnant either.

Very helpful,
Ms. Xochi

By: Derek Chamberlain

Derek Chamberlain — Thu, 30 Jan 2014 19:38:45 +0000

Thomas,

Thanks for commenting. Great points that you raise. As the article suggests, short term disability insurance really isn’t necessary for most folks. Pregnancy, high risk activities, and pre-existing conditions are the only real factors that could sway the decision.

Thanks for stopping by!

By: Thomas

Thomas — Thu, 30 Jan 2014 06:06:18 +0000

One distinction to make is between short-term and long-term disability insurance. Which leads to another question to consider:

* Are you likely to become pregnant at any point in the near future?

Many companies now have ditched their maternity leave in favor of having their female employees use short-term disability insurance to cover maternity leave. Not a fair trade, because the disability insurance only pays 66% of your regular salary (and you may still have to pay taxes on that 66%).

Which then begs the question: how does this shift in corporate practices skew the actuarials? Is this more likely to happen in white-collar versus blue-collar industries?

By: Derek Chamberlain

Derek Chamberlain — Wed, 09 Oct 2013 21:59:42 +0000

Kevin,

Great point – thanks for drawing the distinction and clarifying the issue. Many thanks!

By: Kevin H @ Growing Family Benefits

Kevin H @ Growing Family Benefits — Wed, 09 Oct 2013 20:21:15 +0000

There is a very important distinction about where to get a policy. If Shanna wants a policy covering accidents and illnesses only then she can buy direct through Mutual of Omaha.

If she is looking for something that will cover her normal childbirth then her only option is to get something through an employer. Aflac policies do cover normal childbirth, but they are not sold directly to individuals. The policies are employee paid, so she would have to ask her employer to offer a voluntary option.

By: Derek Chamberlain

Derek Chamberlain — Thu, 12 Sep 2013 14:27:15 +0000

Shanna,

My wife’s short term disability is through her work. Are you sure you really need short term disability?!? Read above section “Who Needs Short Term Disability Insurance” to see if you feel that you really do need it.

If you really do need it, you can buy it yourself on the open market. Companies like Mutual of Omaha, Aflac, and the like would be happy to sell you a policy. Just google “short term disability insurance” and you’ll find dozens of options.

There are all kinds of options for how much of your income to replace percentage-wise, how long the benefit will last, etc. The higher the percentage and the longer it lasts the more you’ll pay each month.

I hope that helps. Let me know if you have more specific questions, and I can try to help you if you’re still having trouble deciding.

By: Shanna

Shanna — Wed, 11 Sep 2013 20:23:43 +0000

Just curious if your wife’s short term disability was through her work? I am on my husband’s health insurance and considering a part time job for myself that does not offer benefits and so I began looking around to see if I could find private short term disability insurance and I am a bit stuck. Any thoughts?

By: Derek Chamberlain

Derek Chamberlain — Thu, 29 Aug 2013 10:59:34 +0000

Rita,

That makes me feel better about getting rid of it if you’ve had the same thoughts and went ahead and eliminated it. Thanks for the input!

By: Rita P

Rita P — Thu, 29 Aug 2013 05:58:51 +0000

When I was on my regular 9 to 5 job I was covered under short term disability insurance. After we had our kids, we just discontinued it as the premium was a bit high. As you mentioned neither of us are working under any such high risk activities so did not feel the necessity of it. Good post Derek and you have detailed out each point quite well