Alternatives to Disability Insurance

Alternatives to Disability Insurance

Most alternatives to disability insurance are not adequate! Most individuals have insurance protection for their home, automobile, health and even their cell phones, but what about their income? A disability lasting 6 months could wipe out 10 year’s worth of savings if a person was to save 5% of their income each year! How long could you make it without your paycheck if an accident or sickness left you unable to work? How would you continue to pay your expenses with no income? If you think social security or workers compensation will be adequate enough to cover you at a time of disability, think again!

Alternatives to Disability Insurance:
(SSDI) Social Security Disability Insurance:

For an individual to qualify for social security disability benefits is very difficult. To qualify for social security disability benefits you must meet the following requirements:

  • Unable to perform any kind of work, not just your current occupation
  • The disability must be expected to last a minimum of one year and/or result in death
  • A partial disability does not qualify for benefits, only a total disability

Social Security also has a 6 month waiting period before benefit payments begin and 65% of the initial SSDI claim applications received in 2009 were denied benefits!

If you did qualify for Social Security Disability Benefits could your family survive on $1,065 a month? That is the average benefit amount paid by SSDI in June of 2010. 8% of those SSDI recipients however received less than $500 a month, 52% received less than $1,000 per month and 97% received less than $2,000 per month!

Workers Compensation:

If you are injured at work or suffer a work-related illness, you may qualify for workers’ compensation benefits. Workers’ compensation benefits can help pay for medical care and rehabilitation needed to help an individual return to work.

However, Workers’ Compensation Benefits May Not Be Adequate

  • Less that 5% of disabling accidents and illnesses are work related
  • The other 95% of disabling accidents and illnesses are not work related; meaning Workers’ Compensation does not cover them.
  • Benefits for workers’ compensation vary significantly by state
  • Benefits are also restricted to a specific maximum and minimum amount

Additional information on your state’s workers’ compensation program can be found at

Other Alternatives: Savings, Family or a Bank Loan:

Relying on your savings, family or a bank loan is not the right approach.

  • Savings: A six month disability would wipe out 10 years of savings if you were to save 5% of your income each year.
  • Family: Would and could your family and friends loan you money to pay your expenses for an extended amount of time?
  • Bank Loan: A bank would not approve a loan for a disabled person with no income as there is no guarantee the bank could be paid back.

The alternatives to Disability Insurance do not provide the amount of protection one needs at a time of disability. The only adequate way to protect your income at a time of disability is by purchasing a disability insurance plan. is here to help you. Whether you have general questions regarding disability insurance, interested in the cost or need to review your current disability insurance coverage, we are here to help you! Since 1971 we have been working with individuals to find the best coverage at the best price to fit their needs.

Contact us today to learn how we can help protect your financial future from a disability.

Alternatives to Disability Insurance - Request Your Disability Insurance Quote


Learn More: Potential Loss of Income

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