Common Disability Insurance Myths
Dec 7, 2011
Jamie Fleischner

Jamie Fleischner

7 Dec, 2011

People often have misperceptions about the need for disability insurance and the process for filing a claim.    

Myth: “I don’t need disability insurance because I’m very careful.  In fact, I’ve never been injured before – why would I in the future?”
Truth: Over 90% of disabilities are caused by illnesses (such as cancer and heart disease) – not accidents.
JHA Disability Fact Book, 2008 Edition


Myth: “Most disabilities are just for a short amount of time.  Anyway, if I do get hurt or sick, I could live on my savings.”
Truth: In 2009, 51% of disability insurance claims lasted more than five years.  Plus, just one year of disability could easily eliminate years of savings (even if a client has saved 10% a year).


Myth:  “I’d probably have an illness or injury that would never qualify for benefits.”
Truth: You may be surprised by the types of illnesses and injuries insurance companies pay claims for, including:

  • Back problems
  • Cancers
  • Cardiac issues
  • Circulatory system
  • Infectious diseases
  • Injuries
  • Mental/nervous and substance
    abuse disorders
  • Musculoskeletal system/
    connective tissue
  • Nervous system
Real claims can and do happen:





Pharmacist 39 Lupus $96,162
Attorney 46 HIV $471.559
Computer Programmer 44 Back $696,583
Physician 42 Nervous System $1,600,000
Dentist 54 Back $388,809


Myth:  “The process for applying for benefits is complicated.”
Truth: Principal Life strives to make the claim process quick and easy.  Our customer satisfaction scores* speak to our commitment to service:

  • 97% were satisfied with claims services.
  • 99% were satisfied with receiving benefits promptly.
  • 98% were satisfied with the accuracy of the benefit payments.

* Source: Principal Life 2010 Customer Satisfaction Survey.


Myth: “Filing a claim takes too long.”
Truth:  Within 48 hours of receiving a claim notification, Principal Life mails the claimant:

  • A Disability Claim Notice to complete
  • An Attending Physician’s Statement to be completed by the attending physician

Typically within five to seven business days receiving all requirements, Principal Life makes and communicates a claim decision.


Myth:  “Social Security or Workers’ Compensation will take care of me.”

  • Only 35% of the 2.8 million workers who applied for Social Security Disability Insurance (SSDI) were approved in 2009.  Also, SSDI benefits may not be enough to maintain a client’s lifestyle. For example, the maximum benefit for someone earning $100,000 a year, is only $16,800 a year.
  • Workers’ Compensation benefits are limited to only occupational diseases or injuries arising out of or in the course of employment.


Related Posts

We’re here to help

Getting the right disability insurance can be downright confusing. At Set For Life, we’ll help you understand the options and work with you to select just the right product for you and your family. These articles will help you understand some of the complexities involved, but we’re happy to walk you through it! If you’re ready to get set, reach out for a quote today!