Disability Insurance

A reader asked how much time I have off in paid disability leave from the state of California. Well…

The short answer?

None.

The state of California does provide disability insurance – to those who pay into it. My employer chooses not to contribute.

Fortunately, I discovered this fact shortly after becoming pregnant and was able to stash as much cash as possible. I feel badly for other employees who are not aware of this until it is too late.

The lesson? Ignore what your friends and relatives say about your coverage. ASK YOUR EMPLOYER! Don’t assume you are covered and don’t assume you won’t need it if you are male. Accidents can happen at any time.

I do have a short term disability policy that covers a small percentage of my salary for 6 weeks but that’s it. But it’s better than nothing!

Go TODAY and get a short/long term disability policy. You never know when you’ll need it.

Posted by Beks on August 4, 2011 at 5:00 AM in Insurance | 9 Comments »
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  1. Alexandria responded:
    Posted: August 4th, 2011 at 10:05 am

    My impression was that the government opts of of mandatory SDI because they offer their own benefits instead (& want their employees to have a choice).

    I have seen SO MANY women opt out of VSDI because they didn’t want to pay a few hundred dollars a year in exchange for tens of thousands in benefits (prgenancy leave). Any time any woman tells me they want to get pregnant, I tell them to sign up for SDI. I just see so much foolishness in this area. (I am talking state of California – to be clear).

    In addition, you can buy private disability insurance. (Would be worthwhile to shop around, before next pregnancy – if there is another). & frankly, most people will need it some day – is for more than just pregnancy. I would absolutely run the numbers.

    May not be worth it, but look into your options for next time.

    If you truly have no options, that is a bummer.
    I have just had so many conversation with other women who were very victim-y about their own choices. Employers don’t fund SDI. Employees do. I just know a lot of women who absolutely opted out and then blamed their employer. Obviously, employees need to be more informed and educated on the matter.

  2. Lilly responded:
    Posted: August 4th, 2011 at 10:07 am

    I´m so amazed.. In Sweden everyone gets 80% of your salary (or a low but liveable sum if you never had a salary) for 480 days to freely dispose during the child’s first 8 years. If you are two parents you get 240 days each, but it’s allowed to give all but 60 days to the other parent (dads are in that way mildly forced to stay home with the child for 60 days or give their days away).

  3. Alexandria responded:
    Posted: August 4th, 2011 at 10:08 am

    Beks – please forgive me for not reading your entire post before commenting. (I thought I had, but obviously not).

    “I do have a short term disability policy that covers a small percentage of my salary for 6 weeks but that’s it.”

    Um – yeah – that’s pretty much what state SDI covers, too. I think it’s great that you do have a policy, though. You are far ahead of most women in your shoes!! I can tell you that.

    Totally with you on the PSA for SDI though – I hope my comment helps too.

  4. Tara responded:
    Posted: August 4th, 2011 at 11:31 am

    I think this may be typical everywhere. I have a voluntary short term disability insurance plan I contribute to and I used it on my pregnancies. (well one of them). My company does provide a long term disability plan that they pay for but that doesn’t kick in until you are out for 6 months. My STD only covered 4 weeks, 2 week waiting period and 4 weeks covered.

  5. cindy responded:
    Posted: August 4th, 2011 at 12:13 pm

    my company pays 6 weeks of disability for those on maternity leave (standard birth) and 8 for c-section but per FMLA we can take up to an additional 6 or 4 (12 total) weeks if wanted. both times during my pregnancies i was able to get my managers to let me work from home with the baby for a couple extra weeks part time using vacation so i didn’t have to go without pay.

  6. mv responded:
    Posted: August 4th, 2011 at 2:38 pm

    Just as no two insurance policies are the same, so it is with employers and what they contribute to, or don’t contribute to. As stated in the blog post, always find out first-hand from your employer about YOUR benefits, not what someone else, especially if they don’t work at the same place, says. This is in regards to EVERYTHING, not just this (for example overtime pay rules vary in certain industries).

    P.S.
    Sweden == Sweden
    Sweden != AnyOtherCountry

  7. shana responded:
    Posted: August 4th, 2011 at 10:01 pm

    I think that your employer was either confused about the information that they were giving you or just clueless.

    In CA, you either have to pay into a state plan or else the employer has to file to replace the state plan with a voluntary disability plan. The state plans covers you at 55% of your salary up to a max of $987/week.

    But CA leave rules are pretty complex. Under a voluntary plan, you should receive more than the 55% or else the rates you contribute should be cheaper than the standard state plan rates.

    You should receive 2 weeks off prior to the delivery and 6 weeks for regular delivery or 8 weeks for a c-section. Then you are also eligible for another 6 weeks of Paid Family Leave (PFL)which also pays at about 55%. So you should receive a minimum of 14 weeks of partially paid leave. The state EDD page should provide you with some additional information: http://edd.ca.gov/Disability/ and also check with your employer on the proper way of filing claims as sometimes they use a 3rd party to handle leave management.

    Hope this helps and let me know if you have any additional questions.

  8. Sarah responded:
    Posted: August 5th, 2011 at 12:21 am

    I was the one who asked how much time you were taking off. If you look on your paycheck, it should say CASDI as a withholding. This is the CA state disability plan…maybe you didn’t pay into it as an employee. The link provided by Shana says it is a state-mandated plan so your employer should have been withholding from your checks and making payments on your behalf.

    I have worked for five different CA employers and have always paid into it whether I used it or not (though I did use it for two pregnancies).

  9. Diva responded:
    Posted: August 6th, 2011 at 9:27 pm

    I wrote a post about why women need disability insurance. http://www.divaindebt.com/what-every-single-girl-needs-disability-insurance

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