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3 Myths about Disability Insurance Dispelled

November 23, 2015

Many people understand that having various types of insurance coverage can provide them with an important safety net in the event of an accident or other adverse event that life has in store for them. While this may be one of the main reasons people purchase policies like life insurance and health insurance, these policies may not provide the protections needed when injuries or illnesses prevent people from being able to earn a living.  In these cases, having disability insurance will be crucial.

Don’t Believe these Misconceptions about Disability Insurance

Myth 1 – “I don’t need disability insurance because I’m relatively young and healthy”

Myths about Disability Insurance Dispelled

Myths about Disability Insurance Dispelled

Fact – This is a dangerous misconception because:

  • Accidents can happen – and illnesses or diseases can develop – at any time.
  • Being in good health one day does not guarantee that health problems won’t arise tomorrow, next month or even next year.
  • About 30 percent of Americans will sustain at least one disability that prevents them from working for at least 90 days.
  • The disability insurance safety net needs to be in place before an illness develops or an accident happens – not after someone has been disabled.

Takeaway: If you don’t have disability insurance coverage, now is the time to get this coverage in place.  You will have it if you ever need to rely on it in the future.  You may want to purchase an individual policy or perhaps you can do so through your employer.  Most individuals have coverage as a benefit of employment, whether they contribute to the coverage cost (the premium) or if it is provided without contribution.

Myth 2 – “I can rely on my employer-provided disability insurance coverage”

Fact – This may not necessarily be true. That’s because your employer-provided coverage may not include both short-term and long-term disability insurance coverage – or it may only provide minimal coverage for both.

Additionally, it should be noted here that:

  • Employers in Colorado are NOT legally required to provide disability insurance to employees.
  • About 70 percent of U.S. employers do not provide disability insurance coverage to workers.

Takeaway: Double check your coverage and policy limits. You may not be as protected as you think.

Myth 3 – “If I get hurt, I can always fall back on government benefits”

Fact – This is another dangerous myth to believe because it can end up leaving you with little to no financial resources in the future if you do become disabled. The fact is that, even if you qualify for and receive Social Security disability benefits later, these benefits are limited, and likely will not provide you with sufficient financial support to get by while you are unable to work.

Takeaway: If you need your paycheck to cover your living expenses month to month, you cannot rely on government benefits to support you if you become disabled. Make sure you have the support you may need in the future by having disability insurance, and that you have purchased sufficient protection.

The above are simple tips about the possible need to disability insurance.  Coverage against financial loss due to an inability to work starts with ensuring you have coverage.  The next and usually most difficult step is trying to convince a disability insurance carrier to pay the benefits insured by a policy. This is where you may need the services of a lawyer.

Contact a Denver Disability Lawyer at McDermott Law, LLC Today

Contact Denver Disability Lawyer Shawn E. McDermott if you need help securing the disability benefits to which you may be entitled.  To learn more about how McDermott Law, LLC can help you, set up a free, no obligations initial consult with our attorney today by calling (303) 964-1800 or by emailing us using the contact form on this screen.

From our offices in Denver, we provide the highest quality legal services to disabled people throughout the state of Colorado, the surrounding states and nationwide.

Categories: Disability, Long-Term Disability Claims, LTC Insurance

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