Insurance Planning, Part 2: Disability Insurance

November 10, 2020
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Disability insurance is one area that is often overlooked. However, the risk of some type of long-term disability is significant. In fact, 25% of American 20-year-olds will suffer at least one disability lasting longer than a year before they reach full retirement age.1 And the risk of a disability in any given year tends to go up with age.


Common Misconceptions


  1. I will get disability payments from Social Security – Social Security has very strict guidelines and often declines applications. In addition, in many cases this will not be nearly enough to cover lost income.


  1. Workers Compensation will pick up the tab – Workers compensation only covers illness or injury related to the job.


  1. All disability insurance is the same – There are vast differences in the types of policies offered. For example, ‘Own Occupation’ pays out if you are unable to do YOUR job. Others only pay out only if you can’t do ANY job.


Common Reasons For Disability


  1. Musculoskeletal disorders affecting back, spine, knees, hips, etc. (30%)
  2. Cancer (15%)
  3. Injuries such as fractures, sprains, or strains (12%)




Disclaimer:  Alex Voorhees and Reston Wealth Management do not provide legal, accounting or tax advice. This information is not intended to be a substitute for specific individualized insurance, investment, tax or legal advice. We suggest that you discuss your specific situation with a qualified insurance, tax or legal advisor. The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. The views, thoughts, and opinions expressed in this blog belong solely to Alex Voorhees, and not necessarily to Reston Wealth Management. To determine which investment(s) or strategies may be appropriate for you, consult your financial advisor prior to investing. No strategy assures success or protects against loss. You should consider the investment objectives, risks, charges and expenses of any investment carefully before investing. You cannot invest directly in an index.


  1. Social Security Administration, Disability and Death Probability Tables for Insured Workers Born in 1997, Table A.