Disability affects millions of people across the United States, yet disability insurance remains one of the least understood types of financial protection. According to the CDC, more than 60 million American adults live with some form of disability. For many, having disability insurance can mean the difference between financial stability and serious hardship. At its core, this type of coverage replaces part of your income if an illness or injury prevents you from working.
There are two main types of disability insurance. Short-term disability policies typically provide income replacement for three to six months, while long-term disability insurance can extend benefits for several years or even through retirement age. Despite its importance, many people dismiss the idea of getting coverage because of common misconceptions. Below are some of the biggest myths—and the truth behind them.
Myth 1: You need a full-time job to qualify.
A common belief is that only full-time employees can get disability insurance. In reality, eligibility depends on whether you can show a loss of income due to illness or injury. As long as you meet the provider’s requirements, you may be able to secure coverage even if you’re not working a traditional nine-to-five job. Evaluating your personal circumstances is key to determining whether disability insurance is a good fit.
Myth 2: Healthy people don’t need disability insurance.
Many assume that being young and healthy means they don’t need to think about disability coverage. Unfortunately, the unexpected can happen to anyone. Injuries, accidents, or sudden illnesses can leave even the healthiest individuals unable to work. Statistics show that one in four workers entering the workforce today will experience a disability before retirement. If your paycheck is your main source of financial security, having disability insurance can provide essential protection.
Myth 3: Disability insurance is too costly.
Another frequent misconception is that coverage is prohibitively expensive. In truth, premiums usually range from 1% to 3% of your annual salary, with costs varying based on age, health, gender, and occupation. Younger and healthier applicants often pay less, while those in physically demanding or high-risk jobs may see higher rates. Factors such as benefit duration, elimination periods, and payout amounts also influence the price. Exploring different policy options can help you find coverage that fits your needs and budget.
Final Thoughts
Disability insurance may not be a popular topic, but it is a vital safeguard for anyone who depends on their income to support themselves or their family. Misunderstandings often prevent people from looking into it, yet the reality is that financial protection during unexpected setbacks can make an enormous difference. By separating myths from facts, you can make a more informed decision about whether this coverage belongs in your financial plan.
