Disability insurance may not be new to you, but there are still common myths about disability insurance. Before discussing about disability insurance myths, we’d like to provide a definition of disability insurance. Disability insurance is a type of insurance that provides monthly income if you are unable to work due to a disability.
- “My insurance at work will cover me if I become disability”. To be honest, employer disability insurance only covers If you are injured at workplace, work-related injured or occupational health problems. If the accident happens and nothing relates to your work, you will not get compensation.
- “My group benefit will pay me full salary, so why would I need my own disability insurance?”. It will not be the case. For group benefit, you only receive maximum 60% of your salary and up to $2,500 a month. If you are earning more than $80,000 annual, then you only get 30% of your salary.
- “My lifestyle is really safe, so I don’t have worry about becoming disability”. You can’t be 100% sure of future. That’s why insurance is designed to protect you from the uncertainty. Even your job is safe, it doesn’t mean you don’t have car accident. No matter what the reason for your disability, your own disability insurance will cover for your income.
- “Disability insurance only pays if I have a physical disability”. Not at all. If you are mentally disabled from work, the insurance company still pay you.
- “If I become disabled from work, I will get the claim immediately”. It’s not completely true. Generally, it will take about 90 days to start receive your benefit. It also depends on the policy you choose “own occupation” or “any occupation”, then you can claim your benefit.