Insurance Myths

Myth #17: If I’m not at fault in an accident, the other person will pay.
This assumes he has coverage. Some people have no insurance or only minimal insurance that won’t cover damage they cause to others. Even if you sue them, you may not be able to recover damages. The best way to protect yourself is having good limits on your own policy for the specific parts that cover being hit by an “uninsured" or “underinsured” driver.

Don't Underestimate the Risk and Impact of Disability

The risks of becoming temporarily or permanently disabled and the resulting financial impacts are very real and often underestimated. Consider...

  • Statistics from the 2000 US Census indicated nearly 20% of the nation’s population had some type of long-lasting condition or disability. (Source:, February 2007)
  • The younger you are the greater the chance of being disabled vs. dying.
  • Almost 30 percent of people between the ages 35 and 65 will experience a disability that lasts at least 90 days during their working careers. (
  • Approximately 1 out of 7 people between ages 35–65 can expect to become disabled for five years or longer. (Source:
  • Most people spend 65% – 75% of their income to cover monthly expenses.
  • Savings can be quickly wiped out. If you save 10% of your annual income, you could wipe out 10 years of your contributions if you were unable to work for a year.
  • Approximately 2/3 of initial Social Security Disability claims are denied, and it can take up to 17 months to get funding. (Source: USA Today Online, July 2007)
  • 48% of all home foreclosures are brought about by a disability. (Source: National Underwriter, May 2002)
  • Half of all bankruptcies result from illnesses or the inability to pay medical bills. (Source: Washington Post, February 2005)
  • Disability benefits from an employer’s plan are usually taxable while benefits from policies purchased by an individual are income tax free.