Insurance ...

In the world today, it is a necessary evil.  For the first time ever, the company I work for is offering "Individual Voluntary Short-Term Disability Insurance."

So let's say I'm injured and can't come to work for four months.  The first two weeks I don't get any pay.  Then I get pay from day fifteen until three months or until long term disability kicks in.    I am not totally financially prepared yet,  I don't have three months expenses in my savings account.  I do have two weeks expenses in there at this time. 

If I don't get the insurance and choose to set the money aside in a dedicated savings account, it would take me almost nine years to save the money.  So if I have one need for the insurance during the next nine years it has paid for itself.  What a perverted thought, I am now gambling that something bad will happen to me.  --- The sole reason that I don't like to think about insurances.  If I don't get the insurance and make it four years before needing it, the at that time I will only have about half of what I need to make it through.

There are three levels.  $400, 40% and 60% of income.  As a single woman, the minimum $400 would be setting myself up for failure.  If I choose to take it, I want to make sure that I am NOT set up to fail. 

That leaves two options to look at 40% or 60% of income  For $11.50 per paycheck difference (fee), I would gain 20% of my income for three months.  That is going to take some calculating to figure out if the ROI (return on investment) would be worth it.  Outside of that, I need to look at my budget.  How would my budget change if I were hospitalized or at home recovering? 

• additional medical bills
• adjustment in food bills
• adjustment in gas needed for the car
• etc

So I need to create a fake budget that makes some assumptions and try to figure out if I take the insurance, what level I would need to not set myself up for failure.  I don't want to assume that I'll need the maximum.  Because that payment added to my current budget could be just enough to tip the scale and send me into failure sooner rather than later. 

Okay, so with the changes I've made in lifestyle lately, I don't think that is the case.  But I do need to consider it to make sure.  If I do take this step, I suppose I should set up a power of attorney.  Because if I'm unconscious in a hospital for several months, having the checks coming in won't help a bit.  (As long as I'm thinking in the worse case scenario, I might as well look at one of the worst possible cases.)

This is a good time to seriously say, "God, please give me wisdom."  AMEN!