Can Workers’ Comp Replace Disability Insurance?

Finding ways to cut costs and save money is important – we get it. Saving people money is actually our job! One way you shouldn’t try to lower expenses, however, is by sacrificing insurance coverage that you really need. Long-term disability is one of the often-overlooked types of policies that you can’t afford to go without. Your ability to earn an income is your most valuable asset, and you need to protect it.

Why do I need disability insurance if I have workers’ comp?

You’re only eligible to receive workers’ compensation if your illness or injury was the result of activities related to your job. The vast majority of cases, however, do not involve the workplace, meaning that these disabilities and illnesses are not covered! Think about it: if you were to have an accident that prevented you from working and it didn’t happen on the job, you would not be eligible for workers’ compensation.  How would you pay the bills or put food on the table? Dave Ramsey suggests purchasing a long-term disability policy no matter how healthy you are or how safe your job is. One in four people will experience a disabling event before retirement, so you’re far more likely to need this than you probably think.

There are more than 51 million working adults without disability coverage. That’s a huge mistake! – Dave Ramsey

Dave Ramsey Insurance

What type of policy should I get?

When it comes to laying out the specifics of a policy, the details can get confusing. Here are some general guidelines based on Dave Ramsey’s recommendations:

  • Long-Term vs. Short-Term: Definitely opt for a long-term policy; you should be able to cover any short-term disabilities with your emergency fund
  • Coverage Amount: Choose a policy that covers 60-70% of your income.
  • Benefit Period: Select a benefit period of at least five years (85% of cases are resolved within this timeframe), but preferably to age 65.
  • Elimination Period: Get the longest elimination period you can afford; the average is 90 days but the cost of coverage reduces significantly if you can wait 180 days to start receiving disability benefits. Remember, your emergency fund should have enough in it to cover this amount of time.

How do I get started?

Our Guides are here to answer any questions you may have and connect you with long-term disability coverage at a competitive price. Give us a call at 1.800.356.4282 to learn more.


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