Disability Insurance: You probably need it, but can you get it?

My dad has been on disability for several years (one of many souvenirs of another driver’s November ’85 decision to booze up and get behind the wheel). His experiences impressed upon me the stark reality that all of those “It would never happen to me” situations can happen, and just might.

Thus, disability insurance seems like a good idea, especially since we are working longer than ever before (on a daily basis, and on a years-til-retirement basis). There are simply more opportunities for “something” to occur, and poof!–the career you had is no longer a possibility.

Do you really need disability insurance? Really?

The Wisdom Journal posted a great article on disability insurance that included some statistics that may surprise you: for instance, if you follow the conventional wisdom of putting away 10% of your income into savings (which very few of us actually do, by the way), one year of total disability will wipe out a decade of your savings’ principal. Simple math, startling results.

The article also offers some tips on selecting a policy if you decide to get disability insurance.

Of course, getting the insurance is a whole new challenge.

Can’t Get No Satisfaction… or Insurance.

Of six mid- to late- twenty professionals that I know personally who attempted to get disability insurance, exactly none of them were deemed healthy enough to qualify for a policy that was even remotely affordable or logical.

Reasons the insurance carriers rejected their applications? (a) several suffered from headaches, (b) another had seen physicians for asthma, (c) another was being treated for carpal tunnel by a physical therapist, and (d) one had been on birth control pills for “too long.”

I find this, frankly, absurd. I understand insurance companies must protect themselves, but headaches? Asthma? Carpal tunnel? Birth control? These are extremely common medical conditions or treatments in today’s professional population–and it actually encourages professionals to avoid seeking treatment for their ailments until they get disability insurance. Delaying treatment can make the condition worse, thereby increasing the likelihood of disability claims. So the whole rigamarole is, as I said, absurd.