What do you think of my insurance coverage?

[PRICEPLUS]

Re: What do you think of my insurance coverage?

BA, Long term disability is a must. It is usually very reasonable and heaven forbid something happens to you and you cannot work. If you pay for LTD it is tax free if you need it. I hope you stay healthy to 110 and beyond but please rethink having it!

[Broken Arrow]

Re: What do you think of my insurance coverage?

Thanks, Price. I'll definitely look into it.

[PRICEPLUS]

Re: What do you think of my insurance coverage?

BA, I had a friend who was thinking of stopping his LTD. I talked him out of it. Two weeks later he was involvedin a major accident which left him unable to work. LTD and Soc. Sec. are all he has now. If he had dropped the LTD he would have been in some really deep poop!

Best of luck and I hope you never have to use it!

[zetta]

Re: What do you think of my insurance coverage?

PricePlus,
Where have you found reasonable rates on LTD? We were looking at purchasing additional coverage through our IEEE membership (which reportedly has really good rates) and I was shocked by the quotes I got -- much much higher than term life. There are also a lot of variable factors that influence the policy price. Since the insurer didn't have an online calculator, I would have to spend a lot of time going back and forth with an agent to figure out the best deal. Are there any parameters you can recommend as a starting place?

[tinapbeana]

Re: What do you think of my insurance coverage?

BA, just throwing my cents in, though it may no longer be timely.

when at the phone company i carried both STD and LTD. STD could go into effect after only missing 3 days of work and would last up to 6 months. it required a doctor's recommendation, but the coverage was such that physical and mental illness in addition to injuries were included. LTD would go into effect after 6 months and would last for 2 years. i chose both because even 60/70% of my wages (my coverages for STD/LTD respectively) would easily shore up our budget at the time, and the benefits would help 'tide us over' until such a time that an application for social security/disability could be approved. i also took into account my company's FMLA policy when signing up for coverage, because they had different regulations if you were out on short-term versus simply FMLA.

my cost with the plan my employer offered was approximately $5 per month for both coverages.

luckily, i never had to use either. with that said, when i had to travel abroad for a month due to work, i felt much better being able to leave my mother with a complete pack of information and a timeline of how many days to call in sick, then when to file for STD, etc if i were hospitalized or injured. as a side note, this company also offered international riders for their coverages at no charge if you were overseas on company business.

at any rate, my suggestion is to see a) what the STD covers (just injury, or illness too) b) what % of your wages are covered and c) would you rather carry the STD or use your EF...

[PRICEPLUS]

Re: What do you think of my insurance coverage?

Zetta, my friend picked it up as part of his benefits package. It was not the greatest but it helped a ton. Since he paid for it it was tax free. If your job does not offer it then I guess starting with a reputable insurance agent is the first thing.

[albertknowles09]

What do you think of my insurance coverage?

hey,
just stuck to your recent insurance policy and enjoy your benefits. if any insurance policy is giving more benefits than older one think on it.

[Like2Plan]

Since the topic of insurance has been brought up, and since my employer has recently switched to a new insurance company, I thought I'd post my new coverage and get some feedback on whether you guys think it's efficient or not.

Basic Life with Accidental Death & Dismemberment
10k benefit. Provided for by the employer. No choice there.

Short term disability & Long term disability insurance
I declined coverage. In fact, I don't understand why it's on here because there's something else that is similar but is cheaper later on.

Accidental Death & Dismemberment
I'm a little surprised that I took 200k! Oh wait, I see. The coverage is dirt cheap (in my book) at $1.38 per week, but in return, I would get a decent coverage in case of an accident and I get dismembered.

Let me also add that dismemberment only qualifies me for half of that coverage, which for a guy in his 30s with 3 kids, isn't much in the end. Loss of hearing or speech nets only a quarter of that policy. Only when I die do I qualify for the entire amount. Yay.

Voluntary term life insurance
I declined it. Hmm. I guess it's because I already had accidental death and dismemberment. That and it's also more expensive than AD&D.?

With 3 kids, you need more life ins--AD&D will not cut it. The scope of AD&D coverage is very narrow.

In the event of accidental death, this insurance will pay benefits in addition to any life insurance held. [3] Death by illness, suicide, or natural causes is generally not covered by AD&D. Additionally, AD&D generally pays benefits for the loss of limbs, fingers, sight and permanent paralysis. The types of injuries covered and the amount paid vary by insurer and package, and are explicitly enumerated in the insurance policy.
link to wikipedia

Will It Really Help?
If you're working in a high-risk job, such as construction, the AD&D policy may be a good idea, although high-risk jobs result in higher premiums. It is inexpensive accident coverage, and it won't hurt to have the extra coverage. However, realize that an accidental death and dismemberment policy is extremely specific and thus unlikely to pay a benefit. If you already have a life insurance policy, purchasing a larger benefit amount might not cost much more, and it will cover more circumstances
Insurance.com

?

Flexible Spending Account
Declined it. It's a FSA, and it doesn't seem that great to me, even though my employer promoted it like it's the best thing since sliced bread.

So, what do you guys think of it? Should I change it, and if so, how?

You should look into your expenses and see if some might qualify for FSA. Things such as eye glasses, OTC meds, copays are covered. You might as well get it tax free..

[Broken Arrow]

Wow, this thread is so old, I don't even remember making it in the first place. Since then, I have also changed employers.

However, the advice is still relevant and I thank you all for the added information. I will definitely look into the changes I may need to make on my insurance.

[Like2Plan]

BA.
I just noticed the date....
Oh well.

[tripods68]

AD&D is cheap because it is not worth anything. I'd drop it too.

I also wouldn't bother with short-term disability. Long-term disability, yes, but not short-term.

Poundwise,

I respectfully disagree. Short Term Disability is far more important than having Long Term Disability. Statistically, I read somewhere that you more likely get hit by a car than hit by a lighting bolt. In addition, short term disability can occur anytime, while walking down the park, playing sports like skiing, anything non-work related injury or working in your garage can happen anytime.

BA,

I'm glad you reconsider adding Term Insurance. This is very important especially when you have kids. I think 10x annual income is sufficient. However, my rule 25 times annual income. This is what I have now.

[MonkeyMama]

Short-term disability is good for the masses (Tripod beat me to it).

If you can self-insure short-term disability, great. But who really can?

I've said in the forums before, women of childbearing age should have this insurance. Coverage for pregnancy disability. I took $30k in benefits over 2 pregnancies. (STD is mandatory in the state I live in).

My dad is in a total opposite situation right now. He is on short-term disability currently. Has plenty of assets to cover short-term disability. BUT, he is losing his job (due to the disability - quite common) and facing up to 5 years of paying a bajillion for private health insurance. Plus he is supposed to be avoiding stress, etc., etc. Short term disability is worth its weight in gold, in this situation. They haven't had to touch savings, or worry about the money part, too much yet. It's a small amount of peace in a complete financial nightmare. & I can gaurantee my dad wouldn't have bought it if it wasn't mandatory. But he's glad he has it, today.

I also don't know what the market rates are, but since it's mandatory here, it's a good deal. Tripod and I may be unaware of the rates for private short-term disability insurance. Just to point out our view is a little skewed. I know a LOT of young moms who opted out (had the choice of government workers). Can I say one word? Idiots! Saved a few bucks a month. Lost tens of thousands, and couldn't afford to take any time off work with their newborns. They'd be bankrupt if they had been put on bedrest, etc. These are not people with money in the bank to self-insure. They just are clueless. Don't get me started on that rant again!

[Broken Arrow]

For what it's worth, my new employer has better coverage, and yes, my term life is also higher now than my previous employer. But again, I'm open to tweaking it, so please feel free to continue to weigh on in this matter. Thanks again!

[tripods68]

BA,

For what it's worth, I have SDI through my employer (State of California) that I pay $35 per month which covers 55% of my gross income in case get non-work related injury that pays me up to one year. In addition, I pay another $22 per month through Union negotiated insurance plan) that pays specific amount based on my gross income up to two years. The rates I pay is based gross. I guess you can never be sure what lies ahead. But this one I don't leave home without income/asset protection on my side.

By the way, I also have family coverage both on ADD insurance which I pay $9 a month and cancer insurance which cost $29 per month. Cancer insurance is very interesting to me since it covers all known cancers in the world, except skin cancer. Why skin cancer, i really don't know.