Common Myths You Need To Know About Disability And Insurance
Not many people know disability insurance is a very important program until it is almost too late, especially for employees in various companies. This is the reason there is always a message given to employers and concerned employees, especially workers who have no idea this plan is being offered to them at work. It is a checklist worth adding as you look at the various benefits provided so that you can understand it before signing up for the cover in the coming year.
Most of the beneficiaries of disability insurance have indicated the payments they receive from their cover have played a very crucial role in the protection of their emotional and financial lives. It is worth noting while long-term plans for disability payments hardly replace one’s salary but offer a buffer of about 60 percent of the total salary. This makes many of the recipients of this plan end up readjusting their priorities and lifestyles. While some cut a chunk or halt the retirement savings, a number delay or skip some vision, dental or medical care for family and themselves.
However, there are a number of myths that should be debunked.
Firstly, many people think they will never need disability insurance. Authorities have estimated that for every four adults who are about twenty years of age, one will end up disabled and perhaps unable to go to work before they are 70 years of age. By 2012 close to 700,000 disabled employees enjoyed the benefits in their longer term cover, amounting to almost ten billion dollars of the total disability coverage sponsored by employers.
Another myth is the employee compensation will cover a person always. Worker’s compensation takes the place of a lost income in case of illness or injury while on a job but only illnesses and disabling accidents below five percent are related to work. About 90 percent of claims for long-term disability are not for accidents but illnesses. Disability insurance is a fresh breath of air for a drowning person knowing the funds are coming in even after an illness has incapacitated a person from discharging his or her normal duties at work.
Another myth in disability and insurance is that it is a problem affecting mostly men and not women. However, statistics show something very different. It has been found that recipients of disability cover are hugely women, over 60 percent of them, especially between 2009 and 2012.
Some people think they are too young or just started their way in life to give it a second thought. Over 40 percent of recipients of disability cover between 2009 and 2012 were below the age of 50, a third of them under the age of 40. In case of a medical need such as surgery, disability benefits are a source of much needed boost and leads to less stress since the money is right there waiting for the recipient.
Some hold they can get this insurance on their own. They have no idea disability insurance that financial advisor channel to people is very expensive than coverage sponsored by an employer. This is information to research and verify as much as possible to get disability insurance before time has gone far too much.
Author Largo Sanderson finds great interesting in writing on the fields of business. He splits his free time between his love for golf and writing for Memphis Insurance.
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Category: Insurance
