Do I Need Disability Insurance?

Prevention is the best medicine.

This blog may seem a bit off topic for a personal injury lawyer, but I frequently talk to people who find themselves in a tough situation when injured because either they don’t have insurance or don’t have enough insurance.

I’m not an insurance salesman, but I work with insurance companies all the time. I see exactly what happens when people fail to adequately insure themselves and it’s not pretty. Sometimes it can be heartbreaking.

Can You Rely on Auto Insurance?

When you’ve had a car accident, regardless of whose fault it is, you have accident benefits through your auto insurance company. They may offer you loss of income benefits, but it’s a percentage of what you make, and most policies are limited to $400 per week.

It’s good to also invest in long term disability insurance either through your company or by purchasing your own policy (particularly if, like me, you’re self-employed.)

The $400 you may receive from your auto insurance company is probably not enough to live off, whereas if you also have LTD benefits, you might be able to claim, for example, $700 per week. Long term disability insurance can provide greater protection to you than your auto insurance does.

Personally, I believe in adding optional auto insurance to my plan and do that for myself and my family.

What if I Have a Slip and Fall?

People come through the door with terrible injuries from a slip and fall.

In a slip and fall situation, you can sue the other person for loss of income, but you won’t get any income until your suit is resolved and that can takes years.

Very rarely are there advance payments in a lawsuit. I am powerless to get you compensation to help you get through and until you win – IF you win – you’re in a tough position.

In contrast, when they have long term disability insurance, you can survive financially until the lawsuit is resolved.

I think it’s good to have your own policy to help while you’re unable to work for any reason. Think about it: You never know when you might need that extra protection, but if the time comes, you’ll be glad you have it.

From most of us, working is vital and investing in long term disability insurance gives you peace of mind.

What Happens if You Get Sick?

It important to remember that there are things that can happen that we can’t sue for. An illness like cancer, for example.

Even if we have insurance, we often take for granted that, with a serious illness like cancer, our insurance policy will cover us. That’s the whole point, right?

Unfortunately, that is not alway the case. I have seen clients with fantastic policies, but whose insurance companies didn’t want to pay out for one reason or another. It happens.

But even if this worst case scenario, there are options. If you’re denied a claim, we can sue. We can go back to the insurance company and make your case. If you have no insurance, you’re between a rock and a hard place and there’s little I – or any of my colleagues – can do to help you.

Long Term Disability and The Bottom Line

Do I Practice What I Preach?

I offer a long term disability policy to my employees and, when it comes to auto accidents, I have optional benefits for myself and my family.

We all know what it is to get pitched by yet another insurance salesman, but long term disability is one option that is worth perusing. You can probably survive without dental insurance, but if you don’t have disability and you can’t work, it’s a different situation.


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