Disability Insurance Myths

Disability insurance is a type of insurance that will replace income if you can no longer work due to disability. However, there are some common myths surrounding disability insurance. In this article, we will bust seven disability insurance myths.

1. It is Only for People with Dangerous Jobs

While it is important for those with dangerous jobs to have coverage, other occupants should utilize disability insurance as well. In fact, most disabilities are caused by illness, not injury. Whatever your profession, if you purchase disability insurance you can have income protection for both injury and illness.

2. I’m Young and Healthy, I Do Not Need Coverage

According to statistics one in every four 20-year-olds will experience a disability before age 67. When you are younger you typically have more financial responsibilities like a mortgage and children. If you purchase disability insurance, you can replace your income if you become disabled and protect your family.

3. Social Security Disability Insurance is the Same Thing

Disability insurance is a private insurance policy that can cover both short term and long-term disabilities. Your monthly benefit is based on the amount of coverage you purchased. On the other hand, social security disability insurance is a program run by the government. It is made to cover long term disabilities. Your benefit amount is based on your work history and contributions to social security. Often people use disability insurance to cover themselves until they can qualify for SSDI since coverage can take a long time to go through.

4. It is Only for People Who Are Fulltime Employees

To purchase disability insurance, you just need to meet eligibility requirements and prove how you are losing wages. This can include part-time and self-employed individuals.

5. Coverage is Not Possible with a Pre-Existing Condition

There are some policies that will have exclusion. But if you shop around, you can find one that will cover you with a pre-existing condition, just expect to pay a higher premium.

6. All Disabilities Are Long-Term

Not all disabilities are long-term and permanent. For example, you may have a condition that is improved with surgery or other medical treatment. But disability insurance will help you to cover costs while you are on the road to recovery.

7. Disability Insurance is Too Expensive

Typically, disability insurance premiums are 1%-3% of your annual income. Premiums will be dependent on your age, gender, health status, and occupation. This means those who are younger and healthier will pay less. On the other hand, if your job requires manual labor, dangerous equipment, and hazardous conditions your premiums will be more.

Debunking Disability Insurance Myths

Understanding the trust behind disability insurance myths can help you when searching for a policy to purchase. Meet with a qualified insurance agent who can help you understand the nuances of your future policy.

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