SWAPA STD/LTD
 

Ok, after listening to the podcast and reading the material SWAPA sent out, I’m leaning towards dropping STD/LTD altogether.

Here’s my thinking. I’ve got around 900 sick trips. So I’ve got plenty to bridge the 60 days before loss of license kicks in.

LTD adds another $2500 per month on top of Loss of License but premiums are about 1TFP per month to insure that amount. We don’t live an extravagant lifestyle so I’m thinking that 50% of average base earnings tax free should be more than enough. (Previously I had been considering LTD so as to avoid a statement of health if I did decide I needed it later).

Am I oversimplifying this decision? Tell me why I’m wrong, and what you and your family have decided to do with this extra coverage. Thanks!

I will be signing up. I dont have a large stash of sick trips and honestly, you just never know what might happen. It will all come down to personal risk and for me, on this issue, my risk tolerance is low. I also like how the rate is adjusted monthly based on earnings, so you are not always paying one flat rate.

I've got around 775 sick trips. More than enough for STD and to even cash some out on LOL if I need to to top off the 50% MBE. My avg last year was 140 tfp so without a cap on the LOL earnings....I think I'll be more than ok without LTD. We have no debt other than the mortgage and I can liquidate some "toys" if need be to fill up savings more than it already is. LTD B pays out more but max cost per month is around 2 tfp for a 12 yr CA....that's a lot to pay for LTD.

Jesus you all need to call out more.

I am ditching it. It's relatively expensive for the benefit and I am willing to bet that it will get into an insurance price spiral since many will do the calculus on getting it and punch out after getting a solid MBE baseline.
My household is low cost living. We spend most of our extra money on travel and that is all discretionary. I still have the same house I have had for the last 13 years and drive a 20 year old car. 50 percent of MBE plus my military check of the month is more than enough to see us through with an extra cushion.

I’ll sell you my 15 year old Lexus. Treat yourself. You’re in the left seat.

Saved it up so I could ditch STD. Under last contract you’d need 6 mos of sick time to float you to LTD…so that’s around 600 tfp. Then a little extra so you don’t come back to nothing.

When you credit 140/mo, you get nearly a 3 day every month into the sick bank. I don’t need to call off every month….so the bank grows.

If I were a commuter, the sick bank would be much lower.

Seems like a minor cost if **** hit the fan with something unexpected, but I'm a scaredy cat.

Youre a better person than I. I cant deal being in the tube for 140 hours a month...