When people think about insurance they often think of life insurance, car insurance, or homeowners insurance. Though they don’t think much about disability insurance, it is an integral part of an individual’s insurance portfolio. A staggering 25% chance of someone suffering an extended disability from illness or injury during their work life puts their income at risk. However, many people view disability insurance more as an expense than a way for them to reduce their risk of losing income. Let’s take a look below at the myths surrounding disability insurance. These myths can cause people to put this important insurance down on their risk mitigation priority list. If you are looking for quality disability support services anywhere and under any circumstances, you can find them on disability support services Melbourne.

33% of employees have disability insurance through the employer. For the lucky 33%, it is a myth that this covers all their DI needs. Many group DI policies are extremely restrictive and will only pay if someone is unable work in any occupation. The group policy will not pay any benefits to a surgeon who has debilitating arthritis. However, she can continue working in another field, like teaching. Pre-tax dollars are used to pay the premium. Any benefits that are paid will become taxable income. Since DI policies typically pay between 60%-60% off a worker’s salary, taxing these benefits can reduce the net proceeds by more than a third. These two issues make group DI policy a less desirable alternative to individual DI policies. The 67% remaining uncovered employees do not have income replacement options in the event of an injury or illness that prevents them from working.

The second myth states that it is more likely to die prematurely than to become disabled and lose income during one’s working life. In reality, serious disability is possible due to injury or illness. A 25% chance of having a severe disability that leaves someone out of work, from age 20 to retirement age 67, is the norm. Unum Insurance reported that 60% are women who file disability claims. This compares with the risk of dying early: around 17% in males between 25-64 and 11% in females.

The next myth is to confuse workman’s injury insurance with disability coverage. These products are entirely different. The former provides wage replacement and medical benefits to employees who have been injured or become ill while working. DI can replace lost wages up to 66% in the event of an injury or illness that stops a person working for a significant amount of time. Only 5% (or less) of disability claims can be directly related to work. However, 90% of disability claims are due to illnesses that are not linked to employment. Your chance of experiencing a non-work-related disability that takes you off work for an extended time is between 18 and 19 times more than you are likely to experience from a work-related illness or injury. Workman’s complete insurance cannot be substituted for disability insurance.