Having a disability, either temporary or permanent, can have a significant impact on your life and livelihood. This makes it essential to be informed about the different types of insurance available – including Disability Insurance – in order to protect yourself financially during difficult times. While there is much to consider when researching disability insurance policies, it’s important to first understand some of the most common misconceptions that many people have surrounding this type of protection. In this blog post, William Schantz uncovers some of these myths and provides factual information so you can make an educated decision when considering buying into or changing your policy.
William Schantz Lists The Common Misconceptions About Disability Insurance
1. Disability Insurance Is Too Expensive: This is one of the most common misconceptions surrounding disability insurance, but it isn’t necessarily true, says William Schantz. The cost of a disability policy depends on numerous variables, including your age and health, occupation, and income level, among other factors. It is important to remember that there are many different types of disability coverage available, so you can customize a policy to fit your budget.
2. My Employer’s Benefits Plan Will Cover Me If I Become Disabled: Many employers offer some form of short-term or long-term disability benefits as part of their employee benefits package. However, this does not always provide sufficient coverage for individuals who become disabled due to an illness or injury. A personal long-term disability insurance policy can provide additional income replacement should a disability prevent you from working.
3. Social Security Will Cover My Disability: Social Security only provides benefits for those who are considered “totally and permanently disabled,” meaning that the disability must be expected to last for at least 12 months or result in death. Additionally, an individual must have worked in jobs covered by Social Security for a certain period of time in order to qualify for disability benefits.
4. I Don’t Need Disability Insurance Because I Have Savings: Although having savings is an important part of any financial plan, the reality is that your savings may not be enough to cover all of your expenses if you become disabled and can no longer work. Disability insurance helps ensure that you have a steady stream of income if you become disabled, in addition to your savings.
5. If I Become Disabled, I Will Get the Same Amount of Money as When I Was Working: Most disability policies provide benefits that are designed to replace a portion of your lost income. Depending on the policy, this may be a percentage (e.g., 50 or 60%) of your pre-disability income up to the maximum amount allowed by the policy.
6. Once I’m Approved for Benefits, My Coverage Is Guaranteed: While it is true that once an individual is approved for disability benefits, they are generally not required to complete additional medical examinations or other requirements in order to continue collecting those benefits, it is important to remember that the insurance company still has the right to terminate coverage at any time. According to William Schantz, in some cases, insurers may require individuals to complete periodic reviews of their disability status in order to continue collecting benefits. Furthermore, if an individual does not follow their doctor’s instructions or fails to keep up with the required paperwork, their policy could be revoked or terminated. It is always wise to stay informed about your policy and understand what is required of you in order for your coverage to remain valid.
William Schantz’s Concluding Thoughts
Overall, there are many misconceptions about disability insurance that can lead people astray when considering whether or not they need this form of protection for themselves and their families. It is important, as per William Schantz, to review all of the details of a disability policy before signing up so that you can make an informed decision and understand the full extent of your coverage.