So, some comments re disability insurance from experience.
Wife was in a major car accident in 98, 5 months in hospital. Achieved what her surgeon termed, maximum medical improvement, totally disabled.
Fortunately, she was working for a decent major corporation and just months before the accident had reconfigured her benefit package. While a super person, she wasn't high on the food chain, just a legal secretary, nothing special in package.
Lessons learned:
Short term disability was great, basically like getting her normal check and benefits for 6 months, but on the last day, it was like flipping a switch to off.
Long term disability immediately pickup from short term. If you haven't read the fine print, not to worry, they are not bashful to inform you.
If long term was a company paid benefit it is taxable income, if employee paid maybe not. She had opted for company paid only, therefore fully taxable.
As noted, the 50% included a SS offset. Due to fact my wife was a federal employee most of her career, she qualified for medicare, but not enough quarters for SS disability, so no offset.
Some months later we receive the SS benefit notice that comes around your birthday and lo and behold those months on short term disability gave my wife her required quarters.
So, armed with this new info we engaged in that battle. Took about a year and a half as I recall and eligibility after winning appeal was back dated to some made up date, not date of disability. As advised we dutifully notified the long term carrier, providing details and copies of the SS correspondence.
About 2 years after that we receive notice of suspension of LT benefits for failure to report receiving SS disability. Naturally, I can and do provide copies of the faxes sent previously. LT suspended payments until they have recovered the amount they determine to have been over payment. Eventually, a check based on 50% minus the SS disability resumes. Those paper checks come in the mail every month, they will not do a direct deposit. Those checks will cease when she turns 65 or they no longer believe she is disabled. At one time there was a hint at a lump sum buy out but it didn't materialize, wife turns 63 this year.
__utmc
