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Disability Insurance: Answers to Your Questions

Filed under: Insurance, Managing Medical Costs

Risk protection is at the foundation of any sound financial plan. You can’t start the journey to achieving your financial goals if you’re vulnerable to catastrophic risk. After all, it takes only one sizable threat or unexpected event to create a financial crisis that throws your planning off track.

If you’re like many Americans, you use insurance to minimize your exposure to risk. You might own health insurance, life insurance, homeowners insurance and more. However, there is one sizable risk for which you may not have protection. It’s the risk of long-term disability.

According to the Council for Disability Awareness, American workers on average believe they have only a 2 percent chance of suffering a long-term disability. The truth is that the average worker has a 25 percent chance of becoming disabled at some point in life.1 Many people don’t protect themselves against disability risk because they believe disability won’t happen to them.

Fortunately, you don’t have to leave yourself vulnerable to disability risk. You can protect yourself with disability insurance. Disability insurance is often available as a benefit through your employer, but there could also be good reason to buy an individual policy.

Not sure whether disability insurance is right for you? Confused about how disability insurance works or why it’s necessary? Below are answers to a few common questions about disability insurance. If you’re not protected against disability risk, now may be the time to take action.


Why do I need disability protection?

As mentioned, the risk of disability is sizable. While it may not be probable that you will suffer a disability at some point, it’s certainly possible. Many people assume disabilities are caused only by accidents. The truth, though, is that a broad range of issues—including injuries, chronic issues, serious illness and even genetic conditions—can cause a disability.

Consider how you might support yourself if you suffered a disability and were physically unable to work. How long would your savings last? The Council for Disability Awareness reports that the average disability claim lasts nearly 32 months.1 Disability insurance helps replace your lost income during that time.


Can’t I rely on Social Security disability benefits?

Many people don’t buy disability insurance because they believe they can rely on Social Security disability benefits. It’s true that Social Security does offer benefits for disability. However, those benefits are often capped. If you’re a high earner, Social Security disability benefits may replace only a small portion of your income.

Also, Social Security sometimes has a lengthy approval process. It can take months or years for an application to be approved. Some people have to go through an appeals process to gain approval. Disability insurance often starts paying benefits as soon as you become eligible.


Isn’t disability insurance expensive?

Have you resisted buying disability insurance in the past because you think it’s too costly? Some disability policies come with substantial premiums. However, many policies have a wide range of adjustable features and benefits. You can often customize your policy to create a protection package that fits within your budget.

Some of the factors considered when calculating your premium amount include your age, your health, your occupation, the policy benefit amount, the length of time the benefit could be paid and more. A financial professional can help you determine which type of coverage is best for you.

Ready to take action against disability risk? Let’s talk about it. Contact us at Ambrose Financial & Insurance Services today. We can help you analyze your needs and develop a strategy. Let’s connect soon and start the conversation.



Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.

16604 – 2017/4/25