The Reality of Disability
For many, disability insurance is overlooked as a fundamental strategy for financial security. However, there are myriad reasons to think again. Continued economic volatility. Rising home foreclosures. Eroded retirement accounts. Stubbornly high unemployment. The struggle for financial security and independence. Personal bankruptcies.
All have heightened American workers’ need for a reliable stream of income. Still, many are not protected from income loss by savings, private insurance, OR government programs. What is interesting is that most consumers believe that accidents are the most expected cause of disability, but research shows that over 95% of disabilities are not work related; therefore workers compensation cannot be used.
Here are some interesting statistics about Disability Insurance:
• Musculoskeletal/Connective Tissue Disorders are the leading cause of disability at 28%, while cancer is the second leading cause at 15%
• Consumers believe their own “personal odds” of becoming disabled are 1 in 100 when in fact 1 in every 4 Americans in the workforce will become disabled
• Approximately 42% of consumers believe that they would rely upon sick leave and vacation if disability struck them
• The average long-term disability claim lasts for 31.2 months
• 37% of consumers have never thought about protecting their income
Far too many haven’t taken any steps to prepare themselves financially. It is important to know what disability insurnce income protection plans are in place, how each one works, and the maximum benefit one is entitled to receive from each plan. Remember, once a disability occurs, it is often too late.
THE REALITY: % of new long-term disability claims caused by each of the following
28% Musculoskeletal/Connective Tissue Disorders
15% Cancer and Neoplasms 10% Injuries and Poisoning
9% Cardiovascular/Circulatory Disorders 9% Mental Disorders
7% Nervous System-Related
5% Complications of Pregnancy and Childbirth
5% All Other
3% Infections and Parasitic Diseases
3% Digestive System-Related
2% Respiratory System Disorders
2% Genitourinary System Disorders
1% Endocrine, Nutritional, and Metabolic Diseases and Immunity Disorders
1% Skin and Subcutaneous Tissue Disorders
The time to take action to secure disability insurance is when you are healthy. If you would like some help weighing your options and plans, please contact us at The Ziff Agency.