Guest guest Posted March 30, 2006 Report Share Posted March 30, 2006 I've never heard of paying into LTD, is this an option for everyone or just at certain companies in certain states? --- In Rheumatoid Arthritis , aclavern33@... wrote: > > > Deborah, > That is so true!!! However its very hard to tell a young person to pay into > short and long term disability because they feel its a waste of money and > some thing they will never use!!!! > > I paid into both and I have been on LTD now for over two years!!!! It was > the best thing I could have ever done. I also used STD until I maxed it > out!!! The the benefits FARR out way the cost. I think they were both costing me > a few dollars a month out of my paycheck. > > Another tip.. > > When you do invest into short and long term disabilty. Ask for a copy of > the policy. They are required by law to provide it when you ask. Be familier > with the rules before you use it. Also learn how the income is treated. My > short term disability was just like my regular paycheck and taxed the same > way. However my LTD is like an insurance payment and NOT subject to income > taxes...essentially its tax free income. Why the differences? It has to do > with the fact that STD was paid for 100% by my company for the regular...I > bought into 100% income protection for the first 6 months....so that was the part > I paid. So it changes how its taxed. > > LTD I paid for myself...so since there was no contribution made by my > employer it is treated like an insurance payment and not subject to income taxes. > > Toni > > In a message dated 3/30/2006 8:16:51 A.M. Central Standard Time, > Rheumatoid Arthritis writes: > > Date: Wed, 29 Mar 2006 16:25:18 -0400 > From: " Deborah Bargad " <dbargad@...> > Subject: Re: SSDI > > *Hi everyone- Just FYI. If you have a job and you have RA or think you have > it, be sure to pay in for short and long term disability. Also if you can, > start putting aside money in a safe bond fund or treasury note so that five > or ten years down the road, you can cash it in and live on it if you need to > * > *An ounce of prevention is worth a pound of cure. Of course none of us have > a crystal ball, but you should invest in your own future with regards to > health. Talk to an investment broker with this objective in mind. Living on > a dividend from investments plus SSDI or Social Security can make all the > difference. Hugs, Deborah. > Quote Link to comment Share on other sites More sharing options...
Guest guest Posted March 31, 2006 Report Share Posted March 31, 2006 It depends on the company and on the buy in. Short term and long term are must haves. If you cant get them, start with a disability insurance provider. Most insurance companies do offer that. I remember being so busy living life and never thinking anything like this could happen to me, that I never looked into it or even though to ask about it. Now I think about all the hell I went through those two years being denied over and over. I was a Nanny at the time and was getting paid under the table. No insurance. I didnt even think to buy in to a disability plan at all. No one ever does. Everyone should. Simply Everyone. Hugs, Deborah On 3/30/06, <catdelouise@...> wrote: I've never heard of paying into LTD, is this an option for everyoneor just at certain companies in certain states? --- In Rheumatoid Arthritis , aclavern33@...wrote:>>> Deborah,> That is so true!!! However its very hard to tell a young person to pay into> short and long term disability because they feel its a waste ofmoney and> some thing they will never use!!!!>> I paid into both and I have been on LTD now for over two years!!!! It was> the best thing I could have ever done. I also used STD until Imaxed it> out!!! The the benefits FARR out way the cost. I think theywere both costing me> a few dollars a month out of my paycheck. >> Another tip..>> When you do invest into short and long term disabilty. Ask fora copy of> the policy. They are required by law to provide it when you ask.Be familier> with the rules before you use it. Also learn how the income is treated. My> short term disability was just like my regular paycheck andtaxed the same> way. However my LTD is like an insurance payment and NOTsubject to income> taxes...essentially its tax free income. Why the differences? It has to do> with the fact that STD was paid for 100% by my company forthe regular...I> bought into 100% income protection for the first 6 months....sothat was the part> I paid. So it changes how its taxed. >> LTD I paid for myself...so since there was no contributionmade by my> employer it is treated like an insurance payment and notsubject to income taxes.>> Toni>> In a message dated 3/30/2006 8:16:51 A.M. Central StandardTime,> Rheumatoid Arthritis writes:>> Date: Wed, 29 Mar 2006 16:25:18 -0400> From: " Deborah Bargad " <dbargad@...> > Subject: Re: SSDI>> *Hi everyone- Just FYI. If you have a job and you have RA orthink you have> it, be sure to pay in for short and long term disability. Also ifyou can,> start putting aside money in a safe bond fund or treasury note so that five> or ten years down the road, you can cash it in and live on it ifyou need to> *> *An ounce of prevention is worth a pound of cure. Of coursenone of us have> a crystal ball, but you should invest in your own future with regards to> health. Talk to an investment broker with this objective inmind. Living on> a dividend from investments plus SSDI or Social Security canmake all the> difference. Hugs, Deborah. > Quote Link to comment Share on other sites More sharing options...
Guest guest Posted April 2, 2006 Report Share Posted April 2, 2006 It is not an option for everyone. Some companies on STD off a 50% option as the base..the company pays 100% for this....If you want the 60-100% option then you have to buy that..hence the term buy up. On LTD sometimes its a shared cost, employer pays all or employee pays all. The way you pay for it also affects how its is taxed. Company paid benfits are taxed like you regular income and employee paid is paid out as an insurance benefit and not subject to income taxes. the shared paid benefit I am not sure on...but I think you are taxed like normal. Toni > > > > > > Deborah, > > That is so true!!! However its very hard to tell a young person > to pay into > > short and long term disability because they feel its a waste of > money and > > some thing they will never use!!!! > > > > I paid into both and I have been on LTD now for over two > years!!!! It was > > the best thing I could have ever done. I also used STD until I > maxed it > > out!!! The the benefits FARR out way the cost. I think they > were both costing me > > a few dollars a month out of my paycheck. > > > > Another tip.. > > > > When you do invest into short and long term disabilty. Ask for > a copy of > > the policy. They are required by law to provide it when you ask. > Be familier > > with the rules before you use it. Also learn how the income is > treated. My > > short term disability was just like my regular paycheck and > taxed the same > > way. However my LTD is like an insurance payment and NOT > subject to income > > taxes...essentially its tax free income. Why the differences? It > has to do > > with the fact that STD was paid for 100% by my company for > the regular...I > > bought into 100% income protection for the first 6 months....so > that was the part > > I paid. So it changes how its taxed. > > > > LTD I paid for myself...so since there was no contribution > made by my > > employer it is treated like an insurance payment and not > subject to income taxes. > > > > Toni > > > > In a message dated 3/30/2006 8:16:51 A.M. Central Standard > Time, > > Rheumatoid Arthritis writes: > > > > Date: Wed, 29 Mar 2006 16:25:18 -0400 > > From: " Deborah Bargad " <dbargad@> > > Subject: Re: SSDI > > > > *Hi everyone- Just FYI. If you have a job and you have RA or > think you have > > it, be sure to pay in for short and long term disability. Also if > you can, > > start putting aside money in a safe bond fund or treasury note > so that five > > or ten years down the road, you can cash it in and live on it if > you need to > > * > > *An ounce of prevention is worth a pound of cure. Of course > none of us have > > a crystal ball, but you should invest in your own future with > regards to > > health. Talk to an investment broker with this objective in > mind. Living on > > a dividend from investments plus SSDI or Social Security can > make all the > > difference. Hugs, Deborah. > > > Quote Link to comment Share on other sites More sharing options...
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