> And one of the things my dad brought up with me is just how important it is to have a good long term disability insurance plan in place. I had never actually heard about it. Long term disability is a policy that can pay out 60% of your salary for the rest of your life if you have an occupation-ending injury.
This is surprising to me. I'm Canadian and I've worked my whole life here so maybe this is one of those Canadian vs US things, but I've never had a job that didn't have long term disability as part of its offering.
Most pay the standard 60% of your pay for the rest of your life if you are unable to work at that job any more.
As someone with a family, I'd say its probably the most important form of insurance to have, if you have someone else to take care of your kids in the event of both parents dieing.
It's not atypical in US tech to be offered long-term disability coverage, startups just tend not to think about it until somebody brings it up. Incubators like YC should probably be raising the point with their alumni.
I believe most large employers in the US do offer it, but much like the 401k it is opt-in, not opt-out, so I assume most people don't have it or if there employer offers it as opt-out, they may not be aware of it.
60% of your income, even if it is tax-free may not be enough to cover everything, the best solution is to take the employer sponsored, which is dollars (i.e. <$10) a month and adding a small one on top.
Isn't this provided by the national health coverage in countries with a welfare state? AFAIK there are a lot of people on disability checks in the US as well, I'm not sure it pays well though.
In Quebec, there is a maximum insured by the state and it start 180 days after the event. So if you hand up breaking your ribs/hands and stop working for 4 months, you never get this. My private insurances cover from 60 days up to the 180 days at 80% and then goes down to 60%. The effect of the state insurances is to lower the cost of the private insurances.
Yes this is what happens in Italy. You pay almost 30% of what you make in a compulsory fund for retirement and disability pension and when you need it, the state pays you.
This is surprising to me. I'm Canadian and I've worked my whole life here so maybe this is one of those Canadian vs US things, but I've never had a job that didn't have long term disability as part of its offering.
Most pay the standard 60% of your pay for the rest of your life if you are unable to work at that job any more.
As someone with a family, I'd say its probably the most important form of insurance to have, if you have someone else to take care of your kids in the event of both parents dieing.