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Old 08-30-2007, 08:00 AM   #1
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I have a plan that pays 60% of my income....what about the other 40%

Are there any other policies you can take out in addtion to the norm to help make up the additional income losses. I have a plan that pays 60% of my income....what about the other 40%

 
Old 08-30-2007, 07:58 PM   #2
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Re: I have a plan that pays 60% of my income....what about the other 40%

You don't get it...and with my LTD policy, that paid 2/3 of my former income, it made up the difference when SSD kicked in (first application approved- seizures documented very well), so I get SSD, and then LTD makes up the difference to total the same 2/3 of the income. It's amazing what you can live on if you have to. I'm just thankful for the benefit. I've been on SSD for 2 years now, and have medicare, not medicaid (which was awful- hardly worth the trouble, except for very expensive medical costs), and the drug plan, part B, and a supplement, that acts like regular health insurance.

 
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Old 08-31-2007, 06:25 AM   #3
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Re: I have a plan that pays 60% of my income....what about the other 40%

I think I get it.....so basically you can ONLY get a maximum of 66 2/3% of your salary and THAT"S ALL.....Right???

Nothing else is available, no Home Mortgage Protection, no nothing

 
Old 08-31-2007, 04:58 PM   #4
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Re: I have a plan that pays 60% of my income....what about the other 40%

Right. And I don't recommend a home equity loan, since you don't always know if you can make the monthly payments with medical issues changing. If you have to, you may have to move. I had to cash in a 403B, which drove me nuts, but also let me live indoors while the SSD/LTD was getting into place (I couldn't get STD because of my diagnoses).

Somehow, it works. I'm hoping to move somewhere cheaper, once I'm healthy enough to move my stuff (U-Haul). Since SSD is federal, it goes with me no matter where I live (along with Medicare). I have to check on the Medicare part D and 'supplement's since not all are covered in all counties of all states (dumb, but that's the way it goes- call your state insurance board to see what companies sell supplements to Medicare patients from SSD).

Before I was put on Medical leave, I was missing hours, and using sick time, so the 66 2/3 is about what I was getting anyway. I was in management, so my % was based on yearly vs hourly income. That also helped a lot.

But, either way, LTD/SSD is insurance, not income, so it's not required to pay 100%, and many only pay 50%, depending on the policy. I'm just glad to get what I'm getting.

 
Old 08-31-2007, 07:42 PM   #5
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Re: I have a plan that pays 60% of my income....what about the other 40%

Do they taxes out of the 66 2/3%?

 
Old 08-31-2007, 07:47 PM   #6
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Re: I have a plan that pays 60% of my income....what about the other 40%

With my LTD, only 40% of the annual amt is taxable, and with SSD, you have to make more than 25000 total to pay taxes (after doing some worksheet, that has you cut your taxable amt in half, then add something- it ends up being way under 25000 unless you've been making 6 figures). I got a refund this year with earned income credit, that I didn't know about....

 
Old 09-17-2007, 08:20 AM   #7
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Re: I have a plan that pays 60% of my income....what about the other 40%

What is the difference between SSD and LTD?

 
Old 09-17-2007, 09:05 AM   #8
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Re: I have a plan that pays 60% of my income....what about the other 40%

Larbec,

LTD is long term disability and is an employer sponsored benefit that is usually put in place when you have exhausted your STD or short term disability. Many times, LTD pays you 60% of your wages when you are considered totally disabled and unable to work. I know that you are just in the process of using your FMLA which is generally 12 weeks of leave, therefore, before you would get to LTD, you would generally have to exhaust both the FMLA and your STD.

SSDI is Social Security Disability and this is a government sponsored benefit that you apply for after being on LTD or unable to work for 6 months.

Hope that helps.
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Old 09-17-2007, 09:31 AM   #9
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Re: I have a plan that pays 60% of my income....what about the other 40%

If you get SSD and LTD, you can ONLY get up to 60% of your pay right?

Can you also get your Social Security?

 
Old 09-17-2007, 10:00 AM   #10
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Re: I have a plan that pays 60% of my income....what about the other 40%

My benefit is 70% of my wages on STD and 60% on LTD.

I am not sure if you can receive SSDI above and beyond your LTD benefit, or if your LTD will just pay the difference between your SSDI benefit and 60% of your wages.

I believe you would switch over from SSDI to SSI when you are eligible for retirement.
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Old 09-17-2007, 11:18 AM   #11
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Re: I have a plan that pays 60% of my income....what about the other 40%

Thanks, all of this is so unclear at times. I received my statement from Social security and it states that if i bacame disabled from this date i would receive "X" amount.

I am unclear would I receive that plus my LTD or not?

I wish there was someway to make up the other 40%

 
Old 09-17-2007, 02:41 PM   #12
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Re: I have a plan that pays 60% of my income....what about the other 40%

You can draw Worman's Comp and SSD at the same time, but the Windfall act limits the combined amount to 80% of your gross wage at the time of disability. I do not know if the same applies for LTD.

BTW - 80% of my gross wage is about equal to what I was taking home.

 
Old 09-17-2007, 02:53 PM   #13
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Re: I have a plan that pays 60% of my income....what about the other 40%

80% is a lot actually. Is the other 20% because you have workman's comp? I am not on disability but trying to look towards the future on "what if's" I have a policy at work that states I will get 60% of my income until retirement.

I am not sure what the Windfall act is?

 
Old 09-17-2007, 10:43 PM   #14
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Re: I have a plan that pays 60% of my income....what about the other 40%

The windfall act reduces your SSD in the event that you are getting other disability payments so that you do not end up making more than what you were if you were working. An example would be:

Work comp pays 65% of gross wage of 4000 per month = 2600
SSD full monthly allowance is = 3000
Total = 5600

Why would a person want to ever try to go back to work. They would have more money every month then when they worked not to mention most of their medical needs taken care of in 2 years. So the government said that will not happen we will reduce the amount of SSD payment so that the total is no more than 80% of gross wage at the time of disability.

Work comp = 2600
Adjusted SSD = 600
Total = 3200

The average person pays approximately 30% of their wage in taxes, so the government figures the 80 as fair, because you will be paying some medical & prescription premiums too. 70% of 4000 = 2800. These are pretty close to my figures and my take home was actually less than that because Montana has high taxes.

Clear as mud?

Last edited by bwitht; 09-17-2007 at 10:50 PM.

 
Old 09-18-2007, 12:13 AM   #15
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Re: I have a plan that pays 60% of my income....what about the other 40%

BWitht,

Thanks for explaining that...made alot of sense to me.

So to recap, basically you would receive your LTD benefit (mine is 60%) and SSDI would pay the additional benefit amount but only up to 80% of your prior wages.

So if I made $3650/mo gross, my LTD benefit at 60% would be $2190/mo.

My SSDI benefit would be around $1500/mo if I ever need to apply.

So if I was receiving LTD and SSDI I could anticipate making $2920/mo between the two which would be 80% of my prior gross monthly income.

Let me know if this checks out on your end.
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