Do you lack disability insurance? You’re not alone. According to the Council for Disability Awareness, nearly 70 percent of workers don’t have disability coverage, through either a private individual policy or an employer group benefit.1
There are many reasons why people choose to forgo disability insurance. Some believe it’s unlikely they will become disabled. Others may believe they are sufficiently protected through Social Security, employer benefits and even personal savings. And some may think they can’t afford disability insurance.
If you don’t have disability protection, consider how your finances might be impacted if you were unable to work for months or even years? Could you support yourself with savings and other assets? Would you be forced to access your retirement savings prematurely? Would you have to scale back your lifestyle or take on debt?
If you’ve resisted disability insurance in the past, it may be because you believe common myths about disability. Below are three of those myths. If any of them have prevented you from exploring disability protection in the past, now may be the time to reconsider.
The chances of suffering a disability are slim.
Think disability won’t happen to you? Think again. The Council for Disability Awareness reports that Americans on average believe they have only a 2 percent chance of suffering a disability. The truth is that workers have a 25 percent chance of becoming disabled.1
Disability may not be likely, but it’s certainly a possibility. A broad range of issues can cause disability. You could develop an illness like cancer or heart disease that limits your ability to work. Chronic aches and pains could develop into more serious conditions. Disability can happen, even if you aren’t involved in an accident.
Social Security or employer coverage will provide protection.
You may be part of a group disability plan through your employer. You can also apply for Social Security disability benefits should you become unable to work. You might assume that those types of coverage provide sufficient protection. That assumption could be wrong.
Social Security does provide disability benefits. However, the benefit amount is usually capped. Many people find that Social Security disability benefits alone are not enough to meet their needs.
Employer benefits sometimes cover only a narrow range of issues. For instance, they may only cover short-term disabilities or total disabilities. A disability doesn’t have to be total to keep you from continuing your occupation. There could be important gaps in your employer coverage.
Disability insurance is too expensive.
You might believe that disability insurance is too costly for your budget. Some policies and types of coverage could be expensive, but there are others that can provide you with a base of protection at a reasonable cost. Many policies have adjustable benefits and features so you can build the policy that best meets your needs and budget.
The more important question may be whether you can afford to go without disability insurance. If you suffer a disability that prevents you from working for years, you could suffer significant financial harm. Disability insurance provides a monthly benefit that serves as a paycheck replacement.
Ready to develop your disability protection strategy? Let’s talk about it. Contact us at Bridgeriver Advisors. We can help you analyze your needs and create a plan. Let’s connect soon and start the conversation.
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