If you speak to an experienced provider of income protection products, such as Drewberry Income Protection, they may tell you just how important it is to consider disability insurance. They might also tell you that many incorrect assumptions are frequently made about disability protection.
Here some of those more common misconceptions are examined.
The government will provide if I become disabled
While it is true that there may be some social benefits available to people who are unfortunate to become disabled through an accident or illness, you may be surprised at just how limited they may prove to be.
There are so many variations depending upon the circumstances concerned that it isn’t possible to discuss them in detail here, however, many people may find it difficult to continue to pay mortgages and meet their monthly financial commitments in the event they were unable to work through disability. Social benefits alone may not provide sufficient help to deal with the problem.
My employer provides various benefits if I get sick
It is important to recognize that there is a significant difference between sickness, as defined by a typical employment contract, and a long-term disability arising from sickness or accident. Under your terms of employment, your employer may have a legal minimum obligation to provide you with certain sickness entitlements and they may choose to supplement that with a broader package. Yet typically those packages might be very constrained by time and you may find that after a specified period, your income from such sources would be reduced and eventually cut off altogether.
By contrast, some disability insurance may be able to offer you very long-term coverage and a significant monthly income in order to enable you to maintain a relatively normal financial life.
I have a life insurance policy
That might be a very sound step to take but once again, you should remember that the financial effects on your family of you being unable to work through disability may be very similar to those associated with you dying prematurely.
Some life insurance policies might, in some situations, agree to make a discretionary payment in the event you are diagnosed with a terminal illness. Yet a disabling condition is not necessarily terminal, so you may not qualify for payment from a life insurance policy in such circumstances.
I wouldn’t get disability coverage because I already have a medical condition
That might not be a correct assumption to make. Some insurance providers may be perfectly happy to take you under risk on a disability cover policy even if you have certain existing medical conditions. Of course, they may ask you to provide full details of your medical history and in some cases, they may require a physical. Yet none of that means that you will denied coverage and it is worthwhile at least making some initial inquiries.