Trustmark Mutual Holding Co.
01/19/2022 | News release | Distributed by Public on 01/19/2022 12:58
4 things you didn't know about disability insurance
When you think of disability insurance, what do you see? Do you picture someone who has suffered a terrible accident? Maybe someone who requires permanent use of a wheelchair? While these scenarios certainly do happen, anyone can become disabled for an extended period of time, at any age, for any number of reasons. Pregnancy, illness or common injuries are all examples of less drastic conditions that could qualify you for disability benefits.
Here are a few things you may not know about disability insurance and why it's valuable.
1. It protects your paycheck when your PTO runs out
Have you ever thought about what would happen if you ran out of sick days or paid time off? What else is protecting your income? Without disability insurance, the answer is…probably nothing or, if you have an employer-paid plan, not enough. If you're unable to work for more than a few days or weeks, without disability insurance, you may have to start dipping into your savings and adjusting your lifestyle to make ends meet. Disability insurance helps replace a portion of your income when you're unable to work, giving you the peace of mind that you can still pay for your regular expenses.
2. Your chances of being disabled may be higher than you think.
It's easy to think "Other people become disabled, not me." However, 1 in 4 of today's 20-year-olds will be disabled before retirement.1 That means, at least a quarter of those starting out in the workforce will need disability insurance at some point during their working years.
3. "Disability" may not always mean what you think it means
One of the reasons it's hard for us to picture ourselves as disabled is because it's easy to think of the most extreme scenarios for becoming disabled. However, the majority of disability claims are due to cancer, musculoskeletal disorders (arthritis, back pain, spine/joint disorders) and illnesses…not accidents.1 Disability insurance helps protect your income in these circumstances and depending on your coverage, can also include maternity, mental health conditions, illness, disease, rehabilitation, surgeries, and other medical needs. Note that many of these are not work-related, so you wouldn't qualify for worker's compensation.
4. The average individual disability claim lasts 34.6 months.2
Another common misconception is the amount of time a disability can take you out of work. If you think your PTO and sick days are enough to account for your recovery time, think again. The average disability claim for an individual lasts about 34.6 months.2 To put that into perspective, the average weekly income for a full-time worker is $1,000.3 That means, over 34.6 months, the average disability would result in $138,400 of lost income if you don't have disability insurance to help replace some of the loss.
Hopefully this helps show the value of disability insurance and how it can help protect your income and your lifestyle. It isn't just for "other people"; there are many circumstances that could require disability insurance and it's important to be financially prepared for whatever life throws your way.
1Council for Disability Awareness. Chances of Disability. 2021.
2National Council for Disability Insurance Awareness. 2021.
3Bureau of Labor Statistics. Usual Weekly Earnings of Wage and Salary Workers Third Quarter 2021. 2021.
Here are a few things you may not know about disability insurance and why it's valuable.
1. It protects your paycheck when your PTO runs out
Have you ever thought about what would happen if you ran out of sick days or paid time off? What else is protecting your income? Without disability insurance, the answer is…probably nothing or, if you have an employer-paid plan, not enough. If you're unable to work for more than a few days or weeks, without disability insurance, you may have to start dipping into your savings and adjusting your lifestyle to make ends meet. Disability insurance helps replace a portion of your income when you're unable to work, giving you the peace of mind that you can still pay for your regular expenses.
2. Your chances of being disabled may be higher than you think.
It's easy to think "Other people become disabled, not me." However, 1 in 4 of today's 20-year-olds will be disabled before retirement.1 That means, at least a quarter of those starting out in the workforce will need disability insurance at some point during their working years.
3. "Disability" may not always mean what you think it means
One of the reasons it's hard for us to picture ourselves as disabled is because it's easy to think of the most extreme scenarios for becoming disabled. However, the majority of disability claims are due to cancer, musculoskeletal disorders (arthritis, back pain, spine/joint disorders) and illnesses…not accidents.1 Disability insurance helps protect your income in these circumstances and depending on your coverage, can also include maternity, mental health conditions, illness, disease, rehabilitation, surgeries, and other medical needs. Note that many of these are not work-related, so you wouldn't qualify for worker's compensation.
4. The average individual disability claim lasts 34.6 months.2
Another common misconception is the amount of time a disability can take you out of work. If you think your PTO and sick days are enough to account for your recovery time, think again. The average disability claim for an individual lasts about 34.6 months.2 To put that into perspective, the average weekly income for a full-time worker is $1,000.3 That means, over 34.6 months, the average disability would result in $138,400 of lost income if you don't have disability insurance to help replace some of the loss.
Hopefully this helps show the value of disability insurance and how it can help protect your income and your lifestyle. It isn't just for "other people"; there are many circumstances that could require disability insurance and it's important to be financially prepared for whatever life throws your way.
1Council for Disability Awareness. Chances of Disability. 2021.
2National Council for Disability Insurance Awareness. 2021.
3Bureau of Labor Statistics. Usual Weekly Earnings of Wage and Salary Workers Third Quarter 2021. 2021.