Myths And Facts On Disability Insurance
We can never predict what can happen to us during our lifetime. Even though we refrain from discussing the unforeseen, it can happen that we meet with an accident, get an injury or suffer from some prolonged illness, and are forced to take a long sabbatical from work. And as a result of these we lose not only our income, but also the facilities associated with it. In such a scenario, it is essential to have a disability insurance policy in place that can protect you from loss of income and your assets and also gives you the confidence to go on in life.
However, there are certain myths associated with buying this policy all over the world, may be due to lack of proper awareness and proper understanding. Let us demystify some of the basic myths.
Myth #1) I do not require this cover
Fact: Working professionals are four times like to face injury or illness. Therefore it is best to opt for a disability coverage that can proactively protect you as well as your family from the crisis situation both financially and emotionally.
Myth #2) Disability insurance is extremely costly
Fact: Not really. There are both short-term disability policies and long term policies available in the market. With the insurance scenario becoming quite competitive, there are a range of covers to suit every budget and requirement. You even get discounted customized disability policies to meet your specific objectives. In fact, if you compare the average annual cost of other insurance coverage such as home insurance, car insurance, general health insurance, etc., disability insurance is quite inexpensive.
Myth # 3) I do not need an individual income insurance cover
Fact: People who generally have a group insurance health plan through their office have this belief. However, these plans often do not cover every type of illness and injury. Some of them cover only employees who suffer from injury on-the-job. Moreover the terms and durations of these policies are short. The group policies are also more stringent in the sense that they offer no premium guarantees or bonuses and can be cancelled anytime. In such a scenario, it is always advisable to have. But a health insurance plan and a disability insurance plan are not exactly the same thing.
An individual disability insurance cover is a great way to supplement your group health plans and give you a better return when there is a loss of income due to partial disability.
Myth # 4) Social Security is a much better option
Fact: In the U.S and many other countries, social security benefits are granted to those who become disabled, due to injury or illness. However, over 50% of the clams are denied by these platforms. This is because they have a lot of stringent rules and define the term itself within a very restricted parameter. In case your claim is approved, you have to wait for at least 6 months before getting the actual benefits. Lastly, the amount is only a fraction of the person's income, which in most cases is not sufficient. From that perspective, disability insurance policies offer a lot of flexibility, and higher benefits.