Do You Need Disability Insurance? What To Know

According to an awareness report, over 37 million working Americans have filed for disability benefits at some point in their careers. And while you may think that disabilities only happen to older adults, the truth is that 1 in 4 20-year-olds will become disabled before they retire.

So, what does this mean for you? It means that having a disability insurance policy is more important than you may realize. So, how to know if you need disability insurance?

What is Disability Insurance? 

Before we get into why you need disability insurance, let’s first define what it is. Disability insurance is a type of insurance coverage that provides benefits to policyholders who are unable to work due to a disabling injury or illness.

Disablement can be either partial (in which case you’re still able to work but with reduced earnings) or total (in which case you’re unable to work at all). And while most people think of disabilities as being physical in nature, they can also be mental or cognitive. 

Types of Disability Insurance 

There are two main types of disability insurance: short-term and long-term. Short-term disability insurance provides benefits for a set period of time—usually between 3 and 6 months—while long-term disability insurance provides benefits until you’re able to return to work or reach retirement age (whichever comes first).

Some employers offer group disability insurance policies as part of their employee benefits packages, but these policies typically only cover a portion of your income and have strict eligibility requirements.

As such, it’s generally recommended that you supplement any employer-provided coverage with an individual policy. 

How do you know if you need disability insurance? 

If you’re like most people, you probably don’t give much thought to the possibility of becoming disabled. But the truth is, anyone can become disabled at any time. In fact, one in four 20-year-olds today will become disabled before they retire.

  1. While 60% of workers say they’re very confident they would still receive a payment if they were to become disabled.
  2. 2. the reality is that most Americans are woefully unprepared financially for a long-term disability. Just 38% have any kind of long-term disability coverage, whether through an employer-sponsored plan or an individual policy.
  3. For those who do have coverage, the majority (70%) have short-term disability insurance only—leaving them unprotected should they experience a longer-lasting disabling condition.
  4. If you don’t have any kind of disability coverage—or if you only have short-term coverage—disability insurance should be high on your list of priorities. 


No one likes to think about the possibility of becoming disabled, but it’s important to be prepared for the financial repercussions such an event could have on your life.

If you don’t have any kind of disability coverage—or if you only have short-term coverage—disability insurance should be high on your list of priorities.

Don’t wait until it’s too late—get covered today.

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