Do I Really Need Disability Insurance?

Many people overlook disability insurance because they don’t believe they are at high risk, figuring they don’t live dangerous lifestyles. However, what most people aren’t realizing is that disability insurance protects from more than just freak accidents. The vast majority of people who are disabled did not become disabled due to injury, but from illness, and most frequently from degenerative diseases of the nervous, musculoskeletal or cardiovascular systems, or cancer. Unfortunately, in these cases, “being careful” doesn’t reduce your risk. So the real question you need to ask yourself is can I afford the consequences of being disabled?

What are my chances of becoming disabled?

The truth is your chances of disability are probably higher than you think. According to the U.S. Census Bureau, about 19% of the population are living with a disability, that’s almost 1 in 5 people. Many people who suffer a disability are able to go back to work at some point, but it begs the question…How long could you survive without your paycheck?

Of course your Personal Disability Quotient (PDQ) is dependent on a variety of factors, such as age, health, diet, activity, etc. Take a short quiz to get an idea of what your risk may be here.

Disability is a double edged sword

Those who are unable to work due to long term disability suffer financial hardship because they are no longer earning a paycheck, but also because of rising medical bills. Evaluating the limitations of your health insurance policy can help you assess how much financial strain you may encounter, should an illness or accident occur.

Disability coverage options

Relying on Social Security Disability is a pretty risky strategy, as only 23% of disabled people actually qualify for disability benefits and most applicants are rejected the first time they apply. Find more on how to qualify for disability through the SSA here.

Long term disability coverage may be offered through your employer, but keep in mind that you do not own those policies. Employer policies are only valid while you’re working for that company and cannot be transferred when you switch jobs.

With a private disability insurance policy, you own it as long as you pay the premiums. Most large insurance groups offer long term disability coverage, but the quotes and policy limits greatly vary. Invincia Insurance Solutions can help you compare your options and find the right policy for you. Interested in getting custom information? Click here to start your quote.

The bottom line

The decision to buy any insurance policy, whether it’s health, life, car, homeowners, or disability insurance, is a risk vs. reward mitigation. If you deem the risk of being unable to work as being less than the cost of the policy (premiums), than you most likely will not take out a policy. However, the choice to buy disability insurance means that you can financially protect yourself and your family from any number of things that may leave you physically or mentally disabled. Often that piece of mind is worth the price.

2 Comments on “Do I Really Need Disability Insurance?”

  1. Douglas Brown

    Ever since I got married, my wife and I have wanted to live more “careful” lifestyles, so as to not get injured. However, as you state in the first paragraph, a lot of people who are already disabled did not get that way because of dangerous habits, but disease or other conditions. It’s a good idea to cover all the bases to be covered in the event of the unforeseen.

  2. Jalu Sakti

    I like how you really described in detail all of the options a disabled person has for insurance. I never knew that social security is a riskier option because of the acceptance rate; maybe it really would be better to look into a policy from a private company. My brother is disabled, so my family is currently looking for which option would be best for him. I think we have a better idea of what to do after finding this article.

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