When it comes to long-term disability insurance, misconceptions abound. Many people have never heard that buying an individual disability insurance policy “is a thing!” (Hopefully you do now from reading my articles). Let’s set the record straight.

Myth #1: I’m Covered by My Employer’s Group Plan.

The Truth: Employer provided disability insurance is a good start, but it’s not enough. Group policies cover only a portion of your income (typically 60%), and benefits are generally taxable. The terms and conditions are extremely limited and if you can’t rely on one paycheck a month; you need supplemental coverage.

Myth #2: I Don’t Need Disability Insurance Because I’m Healthy.

The Truth: Accidents, unexpected illnesses or chronic conditions can happen to anyone, regardless of how many green smoothies you drink or miles you run. In fact, most long-term disability claims stem from common health issues like back injuries, arthritis or mental health conditions — not dramatic accidents.

Disability insurance safeguards your income. Even if you’re in excellent health, the policy ensures you’re protected should the unexpected occur. Nobody has a crystal ball.

Myth #3: Disability Insurance Is Only for Dangerous Jobs.

The Truth: While high-risk occupations like construction or firefighting might seem like obvious candidates for disability insurance, the reality is that desk jobs come with their own risks. Office workers can face repetitive strain injuries, chronic conditions or mental health challenges that prevent them from working. No matter your job, if you rely on your income to pay bills and save for the future, disability insurance is worth considering.

Myth #4: Workers’ Compensation Will Cover Me.

The Truth: Workers’ compensation only applies if your disability is directly caused by a workplace injury. That leaves a huge gap for disabilities resulting from non-work related incidents or illnesses. For example, if you develop a medical condition like cancer or suffer a car accident unrelated to work, workers’ comp won’t help.

Long-term disability insurance provides comprehensive income protection regardless of where or how your disability occurs.

Myth #5: I Can Rely on Social Security Disability Benefits.

The Truth: Social Security Disability Insurance (SSDI) is notoriously difficult to qualify for and often provides only a fraction of your current income. The application process can take months or even years, and approval rates are low.

Even if you qualify, the average monthly benefit in 2023 was just over $1,400, definitely not enough to cover anyone’s expenses. Individual long-term disability insurance bridges the gap, providing a reliable and more substantial income replacement if you can’t work.

Myth #6: Disability Insurance Is Too Expensive.

The Truth: Imagine two job offers. The first for a $100,000 salary that would pay you just a short sick leave in the case of a chronic health issue. Compare that to the second offer for a $98,000 salary that paid you most of your income until you’re 65, as needed. Disability insurance premiums typically cost 2-3% of your annual income, depending on age and gender. Compare that to the financial devastation of losing your income for months or years — the investment in disability insurance is a bargain. I know which job I’d pick. Fine, I’m biased, but still!

Myth #7: It’s Too Complicated to Apply.

The Truth: While the application process can seem intimidating, working with a knowledgeable broker simplifies everything. Brokers guide you through the forms, gather necessary documentation and ensure your application is presented in the best light. A little effort upfront can secure years of peace of mind, a small price to pay for financial stability in the face of the unexpected.

A Closer Look at Customization

Customizing your LTD policy can significantly impact its affordability and effectiveness. For example, choosing a longer waiting period before benefits kick in can reduce premiums. Similarly, opting for a shorter benefit duration can make the policy more budget-friendly while still providing crucial short-term protection. Understanding these options helps you tailor a plan that aligns with your financial needs.

Final Thoughts

Long-term disability insurance is one of the most essential financial tools available and gets very little airtime — your guess is as good as mine as for why. By debunking these myths and raising awareness, I hope all can see that it’s a vital safety net for anyone who depends on their income.

Please reach out if you have any questions regarding policy options.

Jamie “Elisheva” Kopelman is a disability, life and health insurance broker with National Financial Network in Manhattan. Kopelman is passionate about making financial jargon simple and giving her clients quality insurance protection that fits any budget. She lives in New York City with her family and can be reached at [email protected] or by phone at (631) 560.4701