Disability Income Myth #4: "Social Security or Worker's Compensation will take care of me."


You may be wondering if your clients really need individual disability insurance.  Before you decide, know the facts. Income protection, or disability insurance, is an essential part of protecting financial security and an important topic to discuss with clients.  Many consumers don’t understand the need for income protection.  This week, I look at one of the largest misconceptions about social services safety nets. 

  • Nearly 65% of initial Social Security Disability Insurance claim applications were denied in 2012.  Also, the benefits may not be enough.  The average monthly benefit is less than $1,200. (1)
  • Worker’s Compensation benefits are limited to diseases or injuries arising out of or during employment.   Fewer than 5% of claims are work related. (2)

This is a just a brief look but goes to show relying on Social Security or Worker’s Compensation is not a viable income protection plan.  Think of disability insurance coverage as income or paycheck protection.  If you clients become too sick or hurt to work, disability insurance benefits can work like a monthly “paycheck” to help maintain their standard of living. 

To learn more about this, and other Disability Income Myths, visit https://www.buaweb.com/products/Disability-Income-Myths.html.

Disability Income Protection Doesn’t Have to be Difficult. 

BUA offers a variety of personal income and business planning solutions from top carriers for a wide range of occupations.  We offer advisor product and market training programs as well as full underwriting and policy service support.  Give me a call to discuss income protection options for your clients.

About the Author

Jim LaFleur is the Vice President of Business Underwriters Associates, Ohio’s largest Brokerage General Agency, which does business throughout the United States. He began his insurance career in 1996, after earning a degree in Psychology from Kent State University.  A passionate proponent of income protection, he believes the first step in any financial plan is protecting the client’s most valuable asset – the ability to earn a living.  He has helped hundreds of insurance professionals provide thousands of clients with protection solutions designed around the specific needs of each client.





(1) US Social Security Administration, Disabled Worker Benefit Data, December 2012 

(2) Social Security Administration, January 2013