Is my company offering a decent Disability Insurance?

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StevenNJ1
Posts: 270
Joined: Fri Apr 04, 2014 12:56 pm

Is my company offering a decent Disability Insurance?

Post by StevenNJ1 »

Starting to learn more about disability insurance. They say it's the most important one to have. So, asked HR, and company does offer a plan;

Company plan provides 60% of weekly earnings, up to a maximum of $2,000 per week for up to 104 weeks maximum.

Limitations: Pre existing conditions 3 months prior / 12 months insured. (not sure I know what this is)

Rates for Short Term Disability Insurance: For 35-39 yr old (I am 39), cost is 0.40 cents per $10 of coverage. ..... and I have no idea how to calculate this. Is it based off of my weekly gross income? How do you calculate the weekly cost? Let's say my salary is 100k/yr gross.

Problem is that enrollment date is 10 months from today unless I marry or have more kids.

So, is this enough of a plan? What is the cost? Can and should I explore better options on my own? Will it make sense to have 2 coverages, one from company and one I got on my own? 104 weeks seems like not enough in case something does happen to me.

I am 39 and work as VP of Biz development. Not a "high risk of disability" trade.
tj
Posts: 3930
Joined: Thu Dec 24, 2009 12:10 am

Re: Is my company offering a decent Disability Insurance?

Post by tj »

Get an individual policy first, and then consider group policy. Message BruDude.
highdesert
Posts: 69
Joined: Sat Nov 28, 2015 11:50 am

Re: Is my company offering a decent Disability Insurance?

Post by highdesert »

Two years seems pretty long for short-term disability. However, you may be better off with a long-term disability policy that kicks in after 3-6 mo., riding out the short term using sick days, PTO, and your efund. In addition to tj's recommendation, WCI has a nice overview at https://www.whitecoatinvestor.com/how-t ... insurance/
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