Who Needs Disability Insurance?

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March 2 | 2022

Photo by Rodnae Productions from Pexels

What would happen if you were suddenly unable to work due to an illness or injury? Think about it: without your paycheck, how long would you be able to make your mortgage or rent payment, buy groceries or pay your utilities, car payments and credit card bills without feeling the pinch? If you’re like most Americans, it wouldn’t be long at all. That’s where disability insurance comes in.

What is Disability Insurance?

Disability insurance can replace your lost income if you’re unable to work due to illness or injury. Think of it as insurance for your paycheck, which is likely your most valuable asset. Half of working Americans couldn’t make it a month before financial difficulties would set in when faced with the loss of a regular paycheck due to extended illness or injury. Short-term and long-term disability insurance provides a way to avoid dipping into savings or going into debt during an emergency by providing a percentage of your income.

Who needs disability insurance?

The average worker has a 30 percent chance of becoming injured, ill or disabled at some point during their lifetime—yet, 51 million American workers are without disability insurance, including 52 percent of all single female workers. Disability insurance is also crucial for self-employed workers. If you financially support a spouse or partner, children or even aging parents, disability insurance can provide protection and help make sure they’re cared for if you’re unable to work due to a disability claim.

Believe it or not, most disability claims don’t stem from on-the-job injuries. The most common claims are due to illness, cancer, pregnancy, carpal tunnel, back pain and mental health issues such as depression and anxiety. Long-term disability insurance can effectively pick up where short-term coverage leaves off, providing an additional 90 days to one year after the elimination or waiting period.

Thanks to the recent economic and health climate, Americans have changed their expectations about workplace benefits. In addition to traditional benefits like health insurance and life insurance, many employees also consider unpaid leave a must-have benefit. That’s why experts like Fringe Benefit Analysts recommend choosing a long-term disability insurance policy for the most comprehensive and cost-effective coverage.

Is disability insurance worth it?

Many employers offer short-term disability insurance that can replace up to 60 percent of your income for three to six months, depending on company policy. These policies are contingent on your employment with the company. If your injury or illness leads to job loss, your disability insurance benefits are lost, too. When you apply for a supplemental disability insurance policy, however, you’re in control. As the policy holder, you choose exactly how much you want to receive each month as a benefit and how long you want it to last.

How to get disability insurance

Fringe Benefit Analysts is an experienced, full-service, health benefits consulting firm providing disability insurance policies in addition to small business health insurance, vision, dental, group life, accidental death and dismemberment (AD&D) and other voluntary employee benefits. What measures are you taking to protect your income? Call Fringe Benefit Analysts at 801.546.6004 to learn how disability insurance can help protect yourself, and your loved ones, against loss of income due to injury or illness.

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