Despite the limitations, there are strategic reasons for layered coverage, particularly for high-income earners:
Most insurers limit your total combined payout to roughly 60% to 80% of your pre-disability gross income. can i buy multiple short term disability
If you file a claim on two policies, one will typically be designated as "primary" and the other as "secondary". The secondary policy will likely offset (reduce) its payout by the amount you receive from the first. Despite the limitations, there are strategic reasons for
Benefits from employer-paid plans are usually taxable , whereas benefits from a policy you pay for yourself with after-tax dollars are generally tax-free . The "Interesting" Catch Despite the limitations