Disability insurance may be among the most overlooked in the benefits industry. People often mistakenly think they are already covered, can easily get government coverage, or that it’s not relevant to them. At least 1 in 4 of today’s 20 year-olds will become disabled before they retire.1 Can you live without your paycheck for a few weeks, a few months, or a few years?
Disability insurance is needed most often in cases of illnesses like cancer, heart attack or diabetes – not accidents or work-related injuries.2 If your injury or illness is not work-related, it will not be covered by worker’s compensation, so you need to have an alternative form of coverage.
Think you’ll just file for Social Security disability insurance (SSDI)? You may want to think twice, the percent of SSDI benefits awarded at initial application averaged only 24 percent from 2004-2013.3 Why so low? SSA strictly defines disability as not being about to perform “any occupation”, not just your current occupation. The average compensation through SSDI is also likely less than coverage you can obtain through your employer or privately. The average monthly benefit paid in 2014 was only $1,165.39.4