According to the CDC, 61 million American adults live with some type of disability. Because such a large portion of the US population is disabled, disability insurance can be a life-changing asset for millions of people. For those who don’t know exactly what disability insurance is, it’s a form of insurance that provides you with a percentage of your income if an illness or injury prevents you from working and earning a living.
There are two main types of disability insurance: long-term disability insurancewhich usually pays part of your lost earnings for a year up to your entire working life, and Short-term disability insurancewhich replaces a percentage of your lost income for a short time – usually between three and six months.
Disability insurance is arguably one of the most misunderstood types of insurance. Many believe that it is unnecessary or irrelevant to them. But according to the 2022 Insurance Barometer Study, half of Americans (49%) say their household would experience financial difficulties within six months or less if their main breadwinner became ill or injured.
Here we’ll discuss some of the biggest misconceptions about disability insurance and why it might be worth checking out for yourself or your loved ones.
1. I can’t get disability insurance unless I’m working full-time.
Many people believe that you have to work full-time to qualify for disability insurance, which is not true. As long as you meet the eligibility requirements for disability insurance and can show that you are willing to accept a loss of wages that you could otherwise have earned, you may qualify for disability insurance. It is important to properly assess your situation to determine if disability insurance is right for you, regardless of your employment status. To get an estimate of the amount of coverage you would need to maintain your current standard of living, visit the Life Happens Disability Insurance Requirement Calculator.
2. I don’t need disability insurance if I’m healthy.
Even if you are in the best of health now, do not write off the disability insurance. The fact of the matter is, if you’re relying on a paycheck, it’s worth considering disability insurance. What many people don’t realize is that it’s always possible that you will get sick or injured and become unable to work in the future. In fact, one in four workers entering the labor market today will experience a disability before they retire. A disability can affect anyone at any time. Disability insurance can provide you with immense support if something is affecting or eliminating your ability to work and work.
3. Disability insurance is too expensive.
The cost of disability insurance is typically 1% to 3% of your annual salary and depends on a number of factors including age, gender, current health status and occupation. In general, the younger you are, the healthier you are. Disability insurance rates are likely to reflect this. If your job involves hard physical labor, handling hazardous equipment, or unsafe conditions, disability insurance rates tend to be higher.
There are other factors that affect the cost of disability insurance such as: B. Benefit period and amount, exclusion period and more. It’s important to review all premium options when looking for disability insurance, as costs will depend on your specific situation.
Working with an insurance professional is a great way to learn more and get coverage. Read this helpful information on choosing a qualified insurance professional. Then use Life Happens’ Agent Locator to find one near you.