Short Term Disability - Recommendations Needed

[Deleted]

At my last job, they covered STD insurance which paid out at 100% for up to 26 weeks (the benefit was a total of 26 weeks, the amount of weeks paid at 100% was based on tenure, and the balance of the weeks would be paid at 60%). They also offered LTD insurance, again, this was a company provided benefit, and the policy would pay out at 60% once STD benefits elapsed.

I'm not a super healthy person, in the last 6 years I've had 2 hospitalizations for a few days each time, but have never had to be out of the office for more than a week.

My new company offers LTD same as my old company. However, the STD benefit is one that I must purchase. If I purchase through them, there are 3 options:

• 7 day waiting period - $67 per pay period
• 14 day waiting period - $34 per pay period
• 30 day waiting period - $19 per pay period

Obviously, the longer the waiting period, the less expensive the coverage.

I am leaning towards the 7 or 14  day waiting period, at the very least, until open enrollment in the fall. My emergency fund currently does not have enough to cover my salary for 30 days, but it's close. I'm in debt paydown mode so fully funding my e-fund has not been a top priority. Thoughts on that?

Also, any recommendations for independent companies for this type of coverage? I was looking to shop around before committing to anything. 

[sadlebred]

If you can swing the 14 day waiting period I would do that. You could cover it with vacation or sick time if you needed to. I'd also consider putting a bit more in your e-fund. Are you thinking about this as though you are still married? If so, could your family survive on your husband's salary alone for 14 days?

[flygirl]

How much PTO or vacation time do you get? If you get more than 2 weeks, I might go with the 14 day period knowing you might have PTO to cover at least part if not all.

[idahome]

Agree with other posters - how much sick/PTO/vacation do you get. Generally you would be required to use that time (at least sick/PTO) if you have enough then I would look seriously at the 14 day runout period. I would also consider the 30-day runout period if you had enough time off to bridge the runout.

[jg183]

I would do the 14 day because the chance of using it is low but if you do need it you dont want to go too long without pay

[jg183]

also you did not mention what your pay period is, that is drastically different depending on if it is 2 week pay period, weekly, monthly

[ellipses84]

In your situation, I’d choose 14 day. You can typically have PTO cover it some or all days until it kicks in. The 7 day is expensive and the 30- doesn’t seem like it will cover many short term needs. If your paychecks are bi-weekly, $15/week is reasonable for peace of mind if you don’t have much of a safety net financially.