Why You Shouldn’t Underestimate Your Disability Insurance Needs

Most Americans underestimate their need for federal disability insurance, assuming illness or an accident can never happen to them. Here are essential points about disability insurance that are widely misunderstood.

Why Disability Insurance Should be More Common?

One of the reasons why many young people don’t think they’ll need federal disability insurance is because they believe they won’t get into serious accidents. It’s possible to avoid injuries by being a defensive driver and staying away from dangerous activities. Yet most people who file for disability insurance do so because of illness, which can occur at any age.

Disability Insurance Facts

  • About 61 million American adults have some disability that prevents them from doing their regular work.
  • The chances of needing employee disability insurance at a young age are higher than most people realize.
  • Disability insurance provided by an employer isn’t always sufficient for people who need it.
  • There is no federal employee short-term disability insurance available. However, employees who have worked with the federal government for at least 18 months can get long-term benefits through the FERS Disability Retirement plan.
  • Only 35 percent of the U.S. workforce is covered by employer-sponsored disability insurance.
  • About 90 percent of disabilities among Americans relate to illnesses.
  • Nearly a third of American adults aged 35-65 will experience a disability at some point that forces them to take off work for at least three months.
  • About half of the home mortgage foreclosures are due to a disabled homeowner unable to generate income.
  • Social Security disability insurance is available to workers of any income level who have worked for at least 10 years before becoming disabled.

Best Disability Insurance Practices

It’s essential to know details about a federal disability insurance plan or an employer group plan. These two different plans may have similarities that contrast with a self-employed plan. Here are the main issues you should understand:

  1. Know how disability is defined – You should understand the different meanings between “own occupation” and “any occupation.” Own occupation refers to your career in which you cannot perform job tasks, despite being well enough to work in another field. Any occupation policies pay benefits to disabled individuals who cannot work in any “gainful occupation.”

  2. Know where you’re covered – Two different coverage groups exist for disabled individuals seeking disability insurance coverage. One group consists of enrollees in an employer group plan, and the other is self-employed workers. Usually, self-employment disability plans are more expensive. On the other hand, the employer group coverage has better financial advantages, such as paying 50-60 percent of wages when an employee cannot work due to disability. You should be aware of the pros and cons of each group.

  3. Speak with a lawyer if you need help – It’s beneficial to speak with an experienced attorney specializing in disability cases. It will increase your odds of winning a settlement since a seasoned attorney will adequately help you follow the filing process.

Planning for disability insurance helps provide financial security in case you’re ever injured or become ill at any age. Your main options include federal disability insurance, employer group insurance, or self-employment disability insurance. Contact us at Premier Protection to get the proper disability insurance.

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