Disability Insurance Elective Coverage

by Guest » Mon Aug 09, 2010 09:06 am

I'm considering a self-employment opportunity of late. I've heard that all self-employed individuals can apply for state disability insurance, but I'm not aware of the benefits or how they apply. Can you help?

Total Comments: 9

Posted: Tue Aug 10, 2010 03:48 am Post Subject:

What state? That piece of information is wildly important. There are some states that require most employers offer some form of short term disability insurance, and this coverage is usually available for purchase from a small business owners (say a sole prorprietor) who wants the coverage.

Posted: Tue Aug 10, 2010 05:55 am Post Subject:

I'm from SC. I'd love to know the way we're different from our other states. Is it there for small business owners who belong to any specific category? Or is it meant for all?

Posted: Wed Aug 11, 2010 01:47 am Post Subject:

You are not in a mandatory short term disability insurance state. Your best bet is to talk to an agent who is in SC for specifics. If you are interested, I may be able to give you a referral to someone who will likely know much more about available programs than I.

Posted: Fri Aug 13, 2010 09:36 am Post Subject:

You've asked about the benefits of DI elective coverage. State disability insurance offers Paid family leave insurance. I've heard that such paid family leave insurance covers you for upto 6 weeks per year. The quarterly income credits (as per IRS Form 1040) will help determine your benefits each week.

Posted: Sat Aug 14, 2010 09:11 am Post Subject:

I guess disability insurance benefits will be there for about 39 weeks. Your premiums would be calculated upon your net profits mentioned in the IRS Form 1040 schedule for the last tax year.

Posted: Sat Aug 14, 2010 11:24 am Post Subject:

My friend, remember that if your EC account is not paid or becomes delinquent then you won't receive your benefits.

Posted: Mon Aug 30, 2010 04:47 am Post Subject: state Disability and private

I have a private disability insurance through my work that I pay for, I've become disabled (not at work) can I collect State disability also? And how long do you have to file? Thank you

Posted: Mon Aug 30, 2010 11:28 am Post Subject:

With almost all policies purchased through an employer, you will be forced to apply for government benefits. Anything that you receive from the government will cause your private policy to pay you less.

Posted: Wed Sep 01, 2010 01:48 am Post Subject:

you will be forced to apply for government benefits

Although your policy may require you to FILE for any available benefits from the state or federal government, it won't be a requirement of your disability policy that you QUALIFY for those same benefits in order to collect a benefit from your personal policy.

For example, your personal disability policy may use the "own occupation" definition of disability -- can't do your own job due to a covered disabling event and you are disabled. But Social Security's definition of disability is very different, you must not be able to perform "any suubstantial gainful activity" (earning at least $1000/month in 2010). It's much harder to qualify.

can I collect State disability also?

The answer is, "Possibly." You can if you qualify for them, but if you do qualify for state or federal benefits, as skdruaa stated, that money will reduce the amount you collect from your personal policy. But if you don't qualify for other benefits, then your policy will pay its full benefit.

The provision is known as "integration of benefits" -- and it means that your policy, together with any other benefits you receive, will not pay more than your policy would pay by itself if you did not qualify for any other benefits.

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