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Five Myths About Disability Insurance

At 30, Meredith Moore never thought there’d be a time when she would be too sick to work.

As a triathlete living in Alpharetta, Ga., Moore was in great health. She worked in an office setting, not doing anything dangerous. Like most people, becoming disabled wasn’t on her agenda.

Myth No. 1:
I’m Healthy and Won’t Be Disabled
Nearly one of every three workers who are 30 or older will suffer a disability that stops them from working for at least three months at some point in their career. This might surprise you, but Moore was well versed in this risk. As a financial adviser with Eagle Strategies, a subsidiary of New York Life, Moore knew disability insurance was important, and had purchased coverage at 23 as part of her financial plan.

Just weeks after she gave birth to Erik, her first child, tests showed a fist-size tumor growing in her brain. Moore underwent multiple brain surgeries and chemotherapy. The cancer and its treatment impacted Moore’s ability to work steadily.

“It would have been beyond devastating to the business if I had just stopped. My saving grace was to be able to work through the treatment, and know that the disability insurance would help supplement in the income I was deriving from my business,” Moore said. “I was very uniquely positioned to practice what I preach. You plan for the worst and hope for the best.”

Judith Bramson, assistant vice president of health product marketing at MassMutual, said most people think they’ll never get disabled, but unlike Moore, they don’t buy disability insurance.


Terms to Know

Definition of Disability: Some policies say you are disabled if you can’t perform your job, while others say you’re only disabled if you can’t perform any job.

Short-Term Disability Insurance: Pays you if you are unable to work due to a disability, usually for up to six months, but can go as long as two years. The first two weeks of payments are often 100% of your normal income, but payments drop to about 60% after that.

Long-Term Disability Insurance: Pays you if you are unable to work due to a disability, usually starting at six months. It can pay you 50% to 70% of your income, for several years or up until age 65, depending on the policy.
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