Three Common Disability Insurance Myths

Recent disability statistics shows a worrying trend. According to the Council for Disability Awareness, about 12% of the total population in the U.S. is classified as disabled, and more than half of them are in their working years. You can use these and other statistics to disapprove erroneous beliefs that you may have about disability and the need for long-term disability insurance. Here are three such myths that the statistics may help to disapprove: 

Workers Compensation Will Cover You

One of the reasons people have for not buying disability insurance is that they think workers' compensation benefits will cover them in cases of accidents. It's true that these benefits are available to injured employees, but only if the injuries are work related. Work related injuries are those that occur while you are on the clock and engaged in duties related to your job description.

Unfortunately, approximately 95% of disabling accidents and injuries aren't work related. This means workers' compensation insurance doesn't cover them. Therefore, if you are injured, there is only a small chance that it will be work related, and you will receive workers compensation benefits. In short, you need long-term disability insurance to cover most of your disabling injuries and illnesses.

You Are Too Young For the Coverage

Some employees are also of the opinion that disability insurance is only for the old. This is a misconception because the number of employees who suffer disabilities before they reach the retirement age of retirement is high. According to the report, a quarter of 20-year olds will incur disabling injuries, and be unable to work, before they reach retirement age. Given that the median age in the United States is 37.5 years, it's clear that most people fall in this age range, and the probability of getting injured is high.

You Don't Need the Coverage

Another fallacy is the belief that you don't need long-term disability insurance if you ever get injured. Unfortunately, savings fly faster than supersonic jets when you are not working, and you can't rely on your parents (or other relatives) to support you. Sure, they may do so in the short-term (and even this support may not be adequate), but in the long run, you need a more stable source of financial support.

After all, nearly a half (48% to be precise) of Americans do not save any of their annual income, meaning they don't have enough savings to dip into during lean times. A staggering 65% couldn't cover their normal living expenses for even a year if they lost their regular source of income. Unless you are in the lucky minority, you need long-term disability insurance.

For further assistance, contact a local disability attorney, such as Bruce K Billman.