In recognition of Disability Insurance Awareness Month, Principal Life Insurance published this list:
Myth #1: I can rely on my savings.
Fact: Even if you save 10% of your salary, one year of disability could easily wipe out many years of savings.
Myth #2: Social Security Benefits will take care of me.
Fact: Just 35% of the 2.8 million workers who applied for Social Security Disability Insurance benefits in 2009 were approved.
Myth #3: A disability won’t happen to me. I expect to stay healthy.
Fact: Every 10 minutes, 490 Americans become disabled.
Myth #4: I can rely on disability coverage through my employer.
Fact: Group long-term disability insurance typically covers 60% of gross income, and benefits are usually taxable. Can you afford more than a 40% pay cut?
Myth #5: Individual disability insurance costs too much.
Fact: The average annual cost is typically only 1% – 3% of what you earn.
Don’ t let the consequences of a disability derail your lifestyle and future plans. Purchase a long-term disability insurance policy now.