What is Disability Insurance? (And Why You Might Need It)

Jan 18, 2021 | Disability

If you’re on this page, chances are you’re researching to see if you need to enroll in disability insurance during open enrollment. First off, good job! Not a lot of employees put the time into researching their benefits offering. In fact, 93% of employees enroll in the same benefits every year rather than make changes during open enrollment. So give yourself a pat on the back because you’re already ahead of the pack!

To come to the conclusion of whether you need disability insurance, it helps to understand what it does, and we’re here to help you out with that:

What is Disability Insurance?

As the name suggests, disability insurance protects you, the employee, when you are prevented from earning a paycheck due to an injury or disability. While it’s easy to dismiss if you consider yourself a healthy adult, but its value extends far beyond what most people classify as a “disability” (but we’ll get more into that in the next section). In short, disability insurance has less to do with being disabled and more with protecting your paychecks!

2 Debunked Myths about this benefit:

“You only need it if you have a disability.”

False. As we mentioned before, policies like short-and-long-term disability exist to protect you in case you suffer an injury, illness, or a life-event that keeps you from working. Unfortunately, 1 in 4 people will become disabled during their working careers. It pays to be protected when you need it most, and disability insurance can provide that protection for you!

“You only need it if you have a high-risk job or lifestyle.”

Again, false. The need for disability insurance spreads far beyond people who risk their well-being at work. This benefit could be perfect for someone at a desk-job who owes student-loans, or a rock-climber who still owes money on their Jeep! Honestly, your lifestyle and injury-risk have less to do with your need for disability insurance than your financial situation does. And if you’re like 43% of Americans who wouldn’t be able to afford a $400 emergency bill, this is the benefit for you.

Popular Now:

Benefit Education Is Key Year-Round, Not Just During Open Enrollment

It’s no fun thinking about your employee benefits every year during open enrollment. Coming face-to-face with a slew of scenarios that make you uncomfortable isn’t easy…

Top 5 Causes for disability:

Pregnancy Leave
Musculoskeletal Disorders
Mental Illness
Physical Injury

If you have any additional questions about disability insurance, reach out to us @mgmbenefits on Twitter!

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