I recently went to a women and money conference and one of the things they stressed was having short term disability insurance.
I went out and got a 6 month policy but it’s costing me about $70 a month. I just found out that my contract might not renewed in 6 months due to recession so should I cancel my short term disability insurance and save the $420 I’m paying out into savings? I won’t be able to continue the payments if I become unemployed so I’m not sure how one can have a sound economic plan when the recession might take your job away any day!
Originally posted 2010-07-05 21:52:07. Republished by Old Post Promoter
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#1 by SmartA$$ at July 7th, 2010
If you take a step back and look at your finances as a whole, instead of looking at only the possibility of short term disability, you’d see that its wise to have an emergency fund of 3-6 months of living expenses saved. If you have 6 months of living expenses in the bank, then you can just have long term disability that kicks in after 6 months.
Also, take the advice at a conference like that with a grain of salt. I’m sure it was presented as something that is intended to help, but I’ll bet you the companies that sponsor the event are the same ones that are selling you insurance for $70 per month.
#2 by Insurance Pickle.com at July 8th, 2010
You should have a long term disability policy instead of a short-term first of all. You could probably put on a credit card the benefit you’re getting (you could get) from a 6-month policy. You could get so much more coverage with long term. The odds are less that you’ll need it, but the economic impact is much, much greater.
AND, it matters not what the economic cycle is and your chances of becoming disabled.
#3 by mbrcatz at July 8th, 2010
I think you’re better off with a six month emergency fund, than buying short term disability. That’s one of those things you’re better off SELF insurance.
Long term disability, though, that’s a different story.
#4 by Ginger at July 10th, 2010
Very few states have STD, California being one of them. It is much better to have LTD. Sign up for a new job at a temp or perm agency when your contract is due to expire. If you are hired full time, you should be able to get a job with LTD benefits. The STD benefits you buy privately are not as good as group or in the states that mandate them as in CA.