Long term disability insurance is insurance that will help if you cannot work because of a disability for an extended period of time. Many people don’t realize that they should consider buying insurance for a potential long term disability. There are a lot of myths out there about long term disability insurance. Can you separate fact from fiction?
- I won’t ever need long term disability insurance because I won’t get disabled.
Did you know that as many as 30% of people will become disabled by the time they reach the age when they can retire? That’s nearly 1 in 3 people. Also, most long term disabilities aren’t the result of an accident. Unexpected illnesses are much more common causes! If you are only disabled for a short time, you might have enough money saved up to be okay for awhile. But what if you become disabled for 6 months--or for the rest of your life? Then you’ll wish you had long term disability insurance. - Long term disability insurance costs more than it’s worth.
If you’re unable to work, you won’t have a steady source of income from your job. If you have long term disability insurance, you can get as much as 60% of your normal paycheck in insurance money. How much are you willing to pay for financial security? Also, long term disability insurance may be more affordable than you realize. Many employers offer it as a part of their benefits packages, and it is possible to get disability assistance from the federal government. Be careful though, you may not want to rely on those sources. Which brings us to the next couple of points. - I don’t need to buy long term disability insurance. My employer covers me.
Are you sure? If not, you should ask your employer and find out what’s covered in your benefits package. Not all jobs cover long term disability insurance for their employees. If you find out that you don’t have long term disability insurance from your job, you may want to purchase it for yourself. You may also find their amount of coverage unsatisfactory, in which case you can buy another policy to supplement the one you already have. - I don’t need to buy long term disability insurance. The U.S. government will provide me with it.
Do you know how to qualify for Social Security Disability Insurance? The government will only give you money if you are totally disabled. Your condition must be expected to last anywhere from a year to the rest of your life. Also, you’ll need to pass a “duration of work” test and a “recent work” test.
