With Disability Insurance Awareness Month in full swing, it’s time to shed light on what Disability insurance is. LIMRA has released a new disability awareness fact sheet with data collected by Life Happens. The Data surrounding Disability Insurance is astounding.
What Is Disability Coverage?
For those who do not have their own disability insurance, 50% of those who participated in the data surrounding disability stated they would use their savings to help them meet expenses collected if they were unable to work due to illness or injury. This should be a reality check for all those who want to make sure their families are protected when it comes to financial safety. Disability Insurance often called DI or disability income insurance, or income protection is a form of insurance that insures the beneficiary’s earned income against the risk that a disability creates a barrier for a worker to complete the core functions of their work.
Inadequate Coverage Rates
According to data collected from the US Census Bureau in 2008, more than 19 million working-age Americans have a disability that limits or prevents them from work. This risk is for Americans is constantly growing, due to a lack of adequate insurance coverage. Despite such a large need, the number of Americans with coverage has dropped from a 31% high in 2012 to a low of 16% in the year 2020.
Most Common Reasons For Short Term Disability
According to the Council for Disability Awareness, the most common reasons for short-term disability (six months or less) claims are:
- Pregnancies (22.6%)
- Musculoskeletal disorders affecting the back and spine, knees, hips, shoulders and
other parts of the body (19.3%)
- Injuries such as fractures, sprains, and strains of muscles and ligaments (11.5%)
- Digestive disorders, such as hernias and gastritis (7.6%)
- Mental health issues including depression and anxiety (7.1%)
When it comes to employers offering long term disability insurance only 41% stated they offer it to their employees. When using a series of true/false questions regarding disability 45% of respondents thought disability coverage was only obtainable through their employers!
How can we change these current stigmas on disability and help people be prepared for the unexpected? Talk to your loved ones about disability insurance while we still can. Whether its a Facebook hashtag(#DIAM2020) or a call have the important conversations with your family members today to make sure they are taken care of. Do your part and see all the cool resources provided by Life Happens.
Empower wants to help you get the best insurance for your needs and the most for your money. We want to help you stay on top of your health.
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