Disability Insurance

Optimized-canstockphoto0519515If you suffer and accident or an illness that will leave you unable to work, you want the people that rely on you to maintain their established pattern of living. Disability insurance can play a crucial role in keeping you financially afloat if a disabling illness or injury strikes.

Common Misconceptions of Disability Insurance:

1. I am in good health; I won’t become disabled

According to the U.S. Census Bureau, nearly one in five Americans will become disabled for a year or more before the age of 65. An illness or accident that keeps one out of work can be very costly from medical bills, prescriptions and other unforeseen expenses.

2. I’m not in a dangerous line of work

Regardless of your occupation, if you have a job, chances are you need disability insurance. Many people assume disabilities are caused by accidents. However, the National Institute on Disability and Rehabilitation Research reports that only 13% of disabilities stem from injury. The vast majority of disabilities are the result of illness.

 

3. Worker’s compensation will cover me if I become disabled so I don’t need disability insurance

Worker’s compensation only covers you if you are disabled as a result of your job and many worker’s compensation programs follow strict guidelines and pay only limited benefits. Having disability insurance will ensure you are financially stable even if you become disabled outside of work.

4. The benefits I can get through Social Security eliminates my need for disability insurance

Don’t count on it. It is extremely difficult to qualify for Social Security disability benefits. According to the Social Security Administration, in 2003 roughly 70% of those who applied were denied. If you do qualify, it takes five months or longer for benefits to kick in and, on average, pays out just over $800 a month.

5. I don’t need individual disability insurance coverage, because I’m covered through work

Know the specifics of what type of coverage your employer provides. Talk to your company’s benefits or human resources office to find out if the policy covers short or long-term disabilities and the benefit level paid out for claims. If the benefit coverage offered through your company wouldn’t be enough to help you make ends meet in the event of a disability, many companies offer the opportunity to increase coverage through automatic payroll deductions. You can also supplement your company coverage with an individual policy.

6. I’m too young to worry about disability insurance

According to the National Association of Insurance Commissioners, people in their 30’s are three times more likely to become disabled than die. You may have enough money saved to pay the bills for a few months, but what will cover you down the road when the bills are piling up and you’re not receiving a paycheck?

Ask a UFC Disability Specialty Advisor to evaluate a Disability Coverage for your specific OCCUPATION.