Common Misconceptions About Disability Insurance

Most of us know we should have disability insurance, but when it comes down to it, you may be confused about which type of policy is right for you and what it covers. 

There are a lot of misconceptions out there that can make buying disability insurance seem like a huge risk or an unnecessary expense. 

To help clear up some common misunderstandings, here’s everything you need to know about this important coverage:

1. You don’t need disability insurance.

If you’re not sure whether or not you need disability insurance, consider the following:

If you’re self-employed and have no other source of income, disability insurance can be a lifesaver. 

The average family spends $600 per month on medical bills. With no income coming in, that could quickly become impossible to pay even if the family has some savings or investments.

Disability insurance doesn’t just protect against being unable to work due to physical limitations; it also covers mental illnesses such as depression and anxiety disorders–both of which are very common among today’s workforce!

2. Disability insurance is too expensive.

Disability insurance is not expensive. In fact, you can purchase a policy for $100 per month that will pay out $5,000 per month for up to five years if you become disabled. That’s less than the cost of one latte every day!

This type of coverage is probably one of the best investments you can make. 

It provides you with a financial safety net that can help keep your bills current, pay off debt, and cover living expenses if you are unable to work due to illness or injury.

Of course, not all disability insurance policies are created equal. Just because it is the cheapest doesn’t mean it’s your best choice.

Carefully examine your policy before you decide that it is worth the money.

3. You’re too young to need disability insurance.

You might think that disability insurance is something you don’t need until later in life, but this isn’t necessarily true. Disability can strike at any time and affect people of all ages.

Disability insurance can help you if you suffer from an injury or illness that prevents you from working full-time, even if it’s only temporary, no matter how old you are. 

4. Disability insurance will take care of me when I’m old and out of work.

Disability insurance is not a pension, and it’s not intended to replace your income for the rest of your life. If you’re disabled and can’t work, disability insurance will help pay the bills while you recover or look for another job. 

But if you become permanently disabled, your disability insurance will only cover you until your benefit period expires. The length of a typical long-term disability policy varies.

You can purchase an extended benefit period, but it will raise the cost of your premiums.

5. I’m healthy, so I’m good to go.

Unfortunately, you can’t predict when you’ll need disability insurance. You may be healthy now and have never had any major health issues, but that doesn’t mean you won’t get sick or injured tomorrow. 

In fact, your chances of becoming disabled before you retire are about 1 in 4. Those odds are not promising. 

Protecting yourself with a disability insurance policy is a smart investment. 

6. Disability insurance only covers injuries or illnesses that I can’t prevent myself from getting.

It’s important for anyone who works for a living to have some form of protection against being unable to work. 

Still, many people mistakenly believe that disability insurance only covers injuries or illnesses that one cannot prevent themselves from getting.

This is not true.

Disability insurance covers all types of disabilities, including those caused by workplace accidents and illnesses that do not fall under an employer’s health plan coverage (such as cancer).

7. My employer provides disability coverage, so I don’t need my own.

If your employer offers disability coverage, that’s great! 

But it’s important to know that the benefits provided by employers are typically very limited. They may cover only a portion of your salary and exclude other income types, like bonuses or commissions.

In addition, many companies offer short-term disability insurance only–and if you’re out more than a few months due to illness or injury, those benefits will run out before your long-term care coverage kicks in (if any).

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Conclusion

Don’t let misconceptions about disability insurance stop you from protecting yourself.

This type of insurance can be a lifesaver when you need it most. It isn’t too expensive, it isn’t too limited, and it isn’t just for the older generation.