Private LT Disability Questions

[JoiseyMom]

My DH can buy the insurance through Aflac through his company. I was just wondering if anyone knows if 62.00 bi weekly is high or is it a fair amount? Back when I had a career LTD was always part of my paid for benefits...sigh.. the good old days!!

 

[marlynnp]

Does your husband make about $31 an hour?
Then it is what I would expect.

 

[golfgal]

Don't bother with the AFLAC plan, it doesn't cover much. Find a real disability plan through someone else. It is a good idea to have one though. As for the price, it depends on what he does for a living, how old he is and what type/length of coverage he is buying.

 

[Drew Sailbum]

You want to be sure that the plan he has covers disability for his own occupation.

Some LTD policies define disabled as the inability to perform any occupation. Other policies define disability as the inability to perform the insured's own occupation. Typically "own occupation" definition policies cost more.

A surgeon who crushes his hand is unable to perform his own occupation but is able to perform the duties of other occupations such as a cashier. With an "any occupation" definition of disabilty this surgeon is not disabled. With an "own occupation" definiton he is disabled.

Policy costs vary according to age, occupation, definition of disability used, and how many years policy would pay out for a total disability.

 

[minkydog]

I think DHs LTD was about that much. And totally worth it! The chances of a young man being temporarily or permanently disabled are much higher than the chances that he might die. When DH was 47 he developed a serious heart/lung condition. At first he was able to work part-time, so he was on Short Term Disability, but eventually be became so disabled that he was retired from his job. He was only 49 and was in perfect health up until his illness, no reason to suspect anything. It was just providential that he was offered LTD AND that he decided to invest in it.

Long term disability was a lifeline for us. It took about 3 years for him to get approved for SSDI. In the meantime, LTD kept us afloat. We didn't lose our house. Since DH has remained disabled, and will be unable to ever perform any sort of work, he continues to receive both SSDI and LTD. Together, it replaces about 80% of his former salary, which is great because with all our various illnesses and disabilities in the family I am only able to work part-time.

So I will shout it from the rooftops: GET LONG TERM DISABILITY IF YOU CAN! you may never need it. But if you do, you will be so glad you did.

 

[Lucky4me]

DH's company's LTD policy (Metlife) only insured him to 70% of his base pay. Since SSDI's award pays him 72% of his base pay, including our DD's portion, Metlife pays him nothing. Once dd is 18, he will lose her portion and they will recalculate. It all depends on any increases SSDI gives out the next three years.
We always assumed it would be both-Metlife and SSDI, but in some cases like ours, that's not true.
It's all so complicated.
I think he paid $30 a month and his employer paid the rest of it for this.
$124 a month sounds high for this insurance, but I'm not sure what his employers portion was.

 

[golfgal]

DH's company's LTD policy (Metlife) only insured him to 70% of his base pay. Since SSDI's award pays him 72% of his base pay, including our DD's portion, Metlife pays him nothing. Once dd is 18, he will lose her portion and they will recalculate. It all depends on any increases SSDI gives out the next three years.
We always assumed it would be both-Metlife and SSDI, but in some cases like ours, that's not true.
It's all so complicated.
I think he paid $30 a month and his employer paid the rest of it for this.
$124 a month sounds high for this insurance, but I'm not sure what his employers portion was.

Group plans are less expensive and they don't have as good of coverage, plus men are less expensive to insure for disability coverage. Getting group coverage to 60% is pretty normal, the 70% would be an extra benefit you can buy. You can't ever get coverage for MORE than you make and how you are getting paid is very normal. The benefit of having a private plan is that you do have better coverage and you can get closer to 100% since your benefit won't be taxed since you pay for the benefit.

 

[Tinker'n'Fun]

I receive long-term disability from MetLife. Mine was 90% pay when I was paying in and it was no-where as high as you are paying. Maybe $30.00 month. It paid the difference of my SSDI up to 90% of my pay at the time I became disabled. I will receive this check until I turn 67. It was definetely worth it.

I would make sure what the plan entails. Mine was written incorrectly back when and the company has totally re-vamped their terminology in the hand-book re: LTD.

I will admit it has kept me afloat and in my house. We still need to live frugally because SSDI does not increase much and I was young when I became disabled. No matter what paperwork they throw my way, I get it done immediately and send it back. Don't want any reason for it to be dropped... As I always say re: this matter: By the Grace of God, we will survive this!

 

[wdwfan16]

The % of LTD or STD that your company pays is taxable income.

You are paying for a month what we pay for 3 months. The payment is based on your age when the insurance was taken out. If your DH older?

Our pays a set amount not % of income until we turn 65. If we get SSDI that would be in addition to the LTD. We do not carry STD.

 

[Drew Sailbum]

Tax treament of disability benefits varies according to who pays the premium and whether it is with pre-tax or after-tax dollars.

If you pay the full premium with after-tax dollars then any benefits from a claim are not subject to federal income tax. Check with your state to see if it is also free of state tax.

Since the tax treatment makes such a huge difference, it may be worthwhile to be sure you pay with after-tax dollars.

 

[golfgal]

The % of LTD or STD that your company pays is taxable income.

You are paying for a month what we pay for 3 months. The payment is based on your age when the insurance was taken out. If your DH older?

Our pays a set amount not % of income until we turn 65. If we get SSDI that would be in addition to the LTD. We do not carry STD.

It is based on age and INCOME-how much is being covered. If someone is making $20,000/year and someone else is making $100,000, their premiums are going to be significantly different even if they are the same age. Also, women cost more than men when it comes to disability insurance.