Figuring out if you need to protect your paycheck—really, your ability to earn an income—with disability insurance is pretty easy. If you have a job and you rely on your paycheck to meet your monthly bills and financial obligations, you need it.
In essence, disability insurance is there if you suffer an injury or illness and can’t work for an extended period of time. It will replace a portion of your income until you’re able to return to work again.
But most people who are working don’t have this basic protection for the long term, and often it’s because they assume they don’t need it. Here are four common mistakes people make when it comes to understanding disability insurance and its importance in protecting your ability to earn an income.