Say it with us: Disability insurance is for everybody!
That’s right. It isn’t a benefit for people with pre-existing disabilities. Disability insurance provides “paycheck protection” by paying an employee a portion of their salary when they’re unable to work. It could be due to an injury, illness, or condition. It even covers maternity leave!
Really, the only reason someone shouldn’t enroll in disability insurance is if they’re stinking rich. (We’re looking at you, Tom Brady.)
Try and forget everything you thought you knew about disability insurance. (Except for the sentence we made you yell with us at the start of this blog.) Let’s break down what this benefit really is and how it can help you when you need it most.
What is Disability Insurance and what does it cover?
Disability insurance protects an employee if they were to experience an illness, injury, or event that prevented them from working. It has less to do with being disabled and more with protecting your paychecks.
This benefit covers a long list of illnesses, injuries, and conditions, but here’s a short list to keep this quick:
- Digestive Disorders
(Note: Each policy differs and covers different accidents/incidents.)
It’s time to drop the “I don’t need disability insurance!” schtick
There’s a misnomer that people can dismiss the need for disability insurance because they think “it won’t happen to me!”. Listen, we hope they’re right. But the truth is that 1 in 4 of today’s 20-year-olds can expect to be out of work for a year during their career because of a disability. Half of today’s working Americans are living paycheck to paycheck — the need for disability insurance is obvious!
“You only need it if you have a disability.”
False. Policies like short- and long-term disability exist to protect people in case they suffer a covered event. Unfortunately, 1 in 4 people will experience a disability during their working careers.
Pro Tip: Short-term and long-term disability insurance policies are designed to work together. Short-term covers someone immediately after they suffer an injury or illness. Long-term typically kicks in after short-term expires and maintains income protection for however long they’re not able to work. By enrolling in both, an employee is providing their family maximum coverage!
“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, lifestyle and injury risk have less to do with need for disability insurance than finances do. 43% of Americans who wouldn’t be able to afford a $400 emergency bill. Disability insurance can mean the difference between financial disaster and peace of mind.