Top Ten Myths About Disability Insurance, Debunked
You may have your reasons for not getting disability income (DI) insurance. But do you know the facts?
10. Social Security will take care of me.
Fact: Social Security initially denies about 65 percent of all disability claims.*
9. I expect to stay healthy.
Fact: Statistics show one in five people, ages 25-64, suffer a disability.**
8. It costs too much.
Fact: The average annual cost is typically only one to three percent of what you earn.
7. My financial needs change so fast. What policy could keep up?
Fact: A Disability Insurance policy is flexible. You can change it as you need.
6. If my income increases but my health declines, I’ll never get additional coverage.
Fact: There are two ways to increase your coverage without proving evidence of medical insurability: Automatic Benefit Increase, and Guaranteed Insurability (Future Increase Option).
5. I need more coverage, but I can’t cancel my disability at work.
Fact: A DI policy can help fill the gaps left by your current group coverage which is taxable; individual DI benefits are tax free.
4. I would have to be totally disabled to receive benefits.
Fact: There are two ways to protect your income in the event of a partial disability: Partial and Residual Disability rider.
3. My family and friends will help me out.
Fact: Are your loved ones in a position to support you? Do you want them to?
2. I can always do it later.
Fact: People usually don’t get healthier as they grow older, and coverage will cost more.
1. I can rely on my savings.
Fact: Even with saving 10 percent of your salary, one year of disability could easily wipe out ten years of savings.
*Social Security Forum, Volume 21, No. 5 – May 2009 (for fiscal year 2008)
**2004 Statistical Abstract of the U.S.
Here are ten reasons why you should NOT get disability insurance:
1. If your spouse can replace your income and get a good job anywhere, then you do not need to buy disability insurance. Employers are actually wanting to teach your spouse new skills just because they know that your spouse needs a job. Plus your children can go to work. After all, newspaper routes pay good money.
2. If you have at least five years of income in your savings, then you can just live off of that, so you don’t need disability insurance. Of course, whenever the money in your savings account runs out you can simply borrow money from the bank. After all, the only thing that that they care about is the fact that you are healthy and productive. They already know that these things are true.
3. If you have disability insurance where you work, you can depend on your company’s disability insurance to be there for you no matter what, therefore you do not need disability insurance. Plus, you will not mind retraining for a job that you hate just so you can have some type of an income.
4. If your mortgage or rent payments can wait, then you do not need disability insurance. After all, your mortgage company has a lot of years worth of money invested in you and your landlord has your security deposit, so they will not evict you from your place of residence. They do not want to see you and your family on the street.
5. If it is summertime and you like the heat, then you do not need disability insurance because you will not have to pay for air-conditioning. You also do not need heat in the wintertime since you can simply build a fire. As for the telephone, you don’t need one of those either because you can simply send your spouse next door to borrow your neighbor’s telephone.
6. If you do not need anything like soap, clothes for your children, or light bulbs, then you do not need disability insurance.
7. If bill collectors call, they will be understanding of the fact that you are ill and cannot work, therefore you do not need disability insurance.
8. If something happens to you, then you can always get welfare, so you do not need to buy disability insurance. After all, you have paid your taxes all of these years, so you are entitled to your share of welfare when you need it. Plus, nothing is going to happen to you anyway, regardless of what statistics say.
9. If you pay for disability insurance you may never need it, so it is simply a waste of money. You can save even more money by getting rid of your home insurance and life insurance policies as well.
10. If you have a heart attack, you can get disability insurance then, so you really don’t need to buy disability insurance right now. After all, insurance companies will not mind taking a high level of risk on you once you have had your first heart attack.
Of course, this is just a satirical look at why you really DO need disability insurance. So, simply stop and ask yourself, “How much would I lose if a disability stopped my income?” Therein lies the reason why it is so very important for you to get disability insurance today.
We can help you find the best plan for your specific needs and budget. Ask for a personalized quote: DisabilityInsurance@LifeGuy.com or call 877-LIFE-GUY (877-543-3489) .