Disability Insurance Essay

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Disability insurance is often something employees dismiss, thinking they’ll never require it. There are a few misconceptions about disability insurance, however according to The Consumer Federation of America who released a report based on employees who have needed disability insurance, using it for six months or longer. While long-term disability payments do not replace one’s salary (it is usually about 60%), they do provide much-needed assistance should you become injured or deemed unable to perform your duties in your chosen profession. The study illustrated common myths about disability insurance that are in fact untrue. Let’s examine a few.

For instance, it’s important to remember that disability benefits paid by the government are …show more content…

Most long-term disability claims are for illness rather than accidents, which means that worker’s compensation actually is meant to cover expenses and medical costs from accidents that occur at work. Disability insurance payments however are a set amount based on a percentage of the amount you earned working in your field of expertise. Should you become disabled, meaning you can no longer function in the same capacity and therefore are unable to work, your disability insurance will pay you monthly benefits typically until the age of 65 or whatever is stated in your insurance …show more content…

This is not true. Disability insurance in most cases, MUST BE purchased PRIOR to becoming disabled in order to receive benefits. For example, you can’t have a family member pass away and THEN purchase life insurance, disability insurance works the same way. The issue is that disability insurance is costly which is why most people don’t see the value of purchasing it until it is too late. Employer-sponsored coverage is rarely offered because of the high-cost associated with obtaining it. However, some employers will pay as much as 100% of premiums, while others will share the cost with the employee. Both of these options are better than having to pay for the entire cost of insurance yourself. It is always a good idea to find out whether your employer offers disability insurance, and if they do, it is absolutely a good idea to take advantage of

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