Disability Insurance can protect your income in the event you can’t work. There seems to be some common myths about Disability Insurance that lead many people to ignore the need for this critical coverage. If the myths are understood and demystified, it can help people understand this type of insurance better and motivate them to protect their future.
Government disability will cover me if I ever can’t work.
According to the Social Security Handbook, you will not be classified as “disabled” or entitled to benefits unless each of the following conditions is met:
- You are unable to engage in any substantial gainful activity because of a physical or mental impairment. You must not only be unable to do your previous work, but also any other type of work considering your age, education, and work experience.
- Note: It does not matter whether such work exists in your immediate area, whether a specific job vacancy exists, or whether you would be hired if you applied for work.
- Your impairment(s) must be established by objective medical evidence.
- It is expected that your impairment(s) will either result in death or last for at least 12 months in a rowYou must meet the non-medical criteria needed to be insured by the program.
Keep in mind that 64% of applications for Social Security Disability benefits are denied.
Even if your claim gets approved, expect a six-month waiting period before benefits start. Even then, the monthly checks will be a small percentage of your regular income.
I already have disability coverage through work that covers me if I can’t work.
Group disability insurance through your employer is a start…that’s all.
For one, all benefits paid through your employer’s insurance are taxable as regular income. In addition, such policies are typically riddled with exclusions and exceptions that keep the insurance company and your employer in total control during and after your disability.
Our advisors can answer any questions that you may have and talk you through your options to customize a policy for you and your family. We are able to discuss the slew of myths that are out their and demystify some of them to better help you understand Disability Insurance.
Call us at (800) 788 – 8921 or fill out Contact Form to have an advisor call you directly.