Myth # – The Government Would Pay Me
In this entry, I continue my exploration of the Five Myths about Disability Insurance discussed in an article I found in A.M. Best’s Consumer Insurance Center. This is the fifth and final entry of this series.
This is probably the biggest misconception we hear about disability insurance. Unfortunately, if you are depending on the government to provide you with benefits while you are disabled, you will be in for a rude awakening. According the article in the A.M. Best’s Consumer Insurance Center, only 39% of disabled workers who applied for Social Security Disability Income payments were approved in 2005. Even when they were approved, the average monthly benefit in 2007 was just $978. Adding insult to injury, it can take months to receive benefits.
According to an article in USA Today the Social Security Administration faces a record, and rapidly growing backlog of appeals by people who claim they are too disabled to work. Through June, it had just over 745,000 cases pending, and the wait for a hearing averaged 17 months, also a record.
Proper disability protection typically requires individual disability insurance. With some disability policies, you can reduce your premiums by offsetting potential benefits with those paid by Social Security or State Disability.
To recap, the Five Myths about Disability Insurance are:
Myth #1 – I’m Healthy and won’t be disabled
Myth #2 – Your Home is your Biggest Asset
Myth #3 – Worker’s Comp Would Pay Me
Myth #4 – My Employer Would Pay Me
Myth #5 – The Government Would Pay Me