I’m considering a job offer and I have a question re short term disability. They have a plan through Omaha but it only covers like 40-60% max based on number of days out. I’d like to get that number closer to 100%. Can I buy an additional policy somewhere to cover the difference? Is that even “allowed”? To cash out two STD policies?

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I feel like the government wouldn't play ball even if the companies did but to be honest if you asked the HR at either place I'm sure they'd know the answer.

It's possible to supplement your short-term disability coverage by purchasing an additional policy privately. However, it's important to review the terms and conditions of both policies to ensure they can be coordinated and provide the desired coverage. Consulting with an insurance professional can help you understand the options and determine if cashing out two STD policies is allowed and feasible for your situation.

There’s no such thing as cashing out a disability policy. That’s not how this type of insurance works. You need to know whether the disability checks would be taxable income or tax free if you needed to claim disability. Job based plans can be setup either way so the brochure/HR will tell you. If they set things up so your disability payments are tax free then you only need 60% of your salary because you’re trying to replace take home not gross salary.

Think about it, if it’s a tax free plan and you make 100k salary, your paychecks are probably closer to $65k per year after withholding. If you claim disability your payment would be $60k per year but you’d owe $0 tax so that’s what you’d take home.

If your plan is taxable then you can go buy a plan on your own to plug the gap.

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