Debunking the Most Common Long-Term Disability Insurance Myths
When was the last time you thought about what would happen to your family if you suddenly couldn’t work? If you have to think about it, then chances are, it’s been a while.
The simple truth is that one out of every four workers will be diagnosed with a long-term disability before they reach the age of retirement. But despite this startling statistic, many still feel like long-term disability insurance is coverage they can live without.
Myth #1: “I have enough protection through Workers’ Comp and Social Security.”
According to the Council for Disability Awareness, only approximately five percent of accidents or illnesses are workplace-related meaning that the other ninety-five percent will not be covered under workers’ comp.
When seeking to collect social security disability benefits, you may be in for a wait of anywhere from three to five months for an initial decision to be made regarding your case. If, like 66 percent of applicants, your application is denied, you have the option to appeal, but in 2017 the backlog of appeals cases hit over one million with an average processing time of over eighteen months, according to research conducted by Allsup.
Can your family really afford to wait for benefits when you need help?
Myth #2: “I’ll still have to fight for a payout in the event of a long-term disability diagnosis.”
We’ve all heard stories about people struggling to receive payout benefits from their insurance company. However, not all of these cases are related to long-term disability insurance and those that are, are very rare.
Upon enrolling, all of your benefits and circumstances surrounding a potential payout are laid out in front of you. If you aren’t going to receive the amount of coverage you are looking for, then it may be worth looking into other options.
Myth #3: “I can’t receive long-term disability insurance because I’m a government employee.”
If you are a government employee enrolled in a Federal Employees Retirement System (FERS) plan, you are still able to apply for long-term disability benefits. According to the Council for Disability Awareness, “While you can buy private supplemental long-term disability insurance in addition to having FERS benefits, you may not get as much coverage as you expected.”