3 Common Myths about Disability Insurance

Many people complain about being “insurance poor.” There are so many types of policies we are required to have; such as auto, home, business and now health insurance. Though the likelihood of becoming disabled during your working career is higher than many other risks, many people either are simply not aware of the need for this type of coverage.

Roughly 30% of workers will suffer from a debilitating illness or injury at least once before they retire. To make matters worse, most workers do not have adequate savings in an emergency fund to pay their expenses if they are unable to work. If you have a family that depends on your income to survive and especially if you have debt obligations, it is essential to have some type of coverage to account for a worst case scenario.

There are some myths regarding disability coverage that often cause people to decide against purchasing it. Here are three of the most common:

I work in a low-risk job, so I don’t need disability insurance: Some people do not think they need to be covered if they work a desk job of do not engage in strenuous physical activity. Though your level of risk may not be the same as a police officer, fireman, factory or construction worker, even office workers commonly suffer from certain injuries; such as repetitive stress injuries from typing, neck and back injuries from sitting for long periods of time and headaches from staring at a computer screen all day. On top of that, accidents can happen even in the safest places, so everyone who has monthly obligations and a family to support should be covered.

My employer provides workers compensation coverage, so I’m covered: If you suffer from an illness or injury on the job, you might be approved for workers compensation. However, roughly 90% of all debilitating injuries are not work-related, so 9 out of 10 times, workers compensation is not going to be there for you.

I have worked the required number of quarters to qualify for Social Security Disability, so I am already covered: If only this were the case. Yes, Social Security Disability is supposed to cover injured workers who have worked long enough and paid enough into the system. The problem is on average, 70% of Social Security disability claimants are denied the first time they apply. If you hire a lawyer and go through a lengthy appeals process, you have about a 50% chance of being approved on appeal. So even in the best of circumstances, your chances of receiving Social Security Disability if you need it are about 50/50.

Disability insurance is something most workers should at least consider as an added protection for themselves and their family. There are several factors to look at in buying a specific policy and prices may vary. The best place to start is to speak with an independent insurance agent that has access to several of the top insurers in your state. An independent agent can examine your specific circumstances and find the right policy to fit your needs and budget.