Resources
Common Myths About Disability Insurance
(source: Principal Life Insurance Company)
Many people don’t think twice about insuring their home, car and other personal assets. But what about the income that allows you to purchase those assets?
People who don’t have any or enough individual disability income (DI) insurance often make their decision based on common myths:
Myth #1: I can rely on my savings.
- Even if you save 10% of your salary, one year of a disability could easily wipe out many years of savings.
Myth #2: Won’t Social Security benefits take care of me?
- Just 35% of the 2.8 million works who applied for Social Security Disability Insurance benefits in 2009 were approved.
Myth #3: This won’t happen to me. I expect to stay healthy.
- Every 10 minutes, 490 Americans become disabled.
Myth #4: My employer provides disability coverage
- Group long-term disability insurance typically covers 60% of gross income, and benefits are usually taxable. Could you afford more than a 40% pay cut?
Myth #5: Individual Disability Income Insurance costs too much
- The average annual cost is typically only 1% - 3% of what you earn.
Don’t let the consequences of a disability derail your lifestyle and future plans. As part of our value added services, we are always willing to discuss how we can help you protect your most valuable asset – your ability to work and earn an income.
Sources:
1 Social Security Online, disabled worker beneficiary statistics
2 National Safety Council®, Injury Facts® 2010 Ed.
Disability Insurance has certain limitations and exclusions. For costs and complete details of coverage, contact our office.