Sixty-one percent of Americans believe most people need disability insurance, yet only 26% said they owned any, according to the 2015 Insurance Barometer Study conducted by LIMRA and Life Happens.
According to Social Security Disability Insurance (SSDI) statistics 1 out of 4 of today’s 20-year-olds will suffer a disability before they retire. On average, a disabling injury or illness keeps people out of work for three months or more.
Each May, Disability Insurance Awareness Month is an effort to inform people about the importance of protecting their paycheck in the event they are unable to work due to a disabling injury or illness. The Council for Disability Awareness (CDA) reports that one-third of people said they cannot afford disability insurance. When asked what they think it costs, women estimated $50 a month on average and men said $60 a month. On an annual basis that converts to $600 and $720, respectively. The latest LIMRA Group Disability Survey found annual plan costs tend to range from $200-$300 on average.
In fairness, workers often don’t know the cost of a policy because so much of it depends on individual factors, such as age, salary, etc., and the extent to which their employer participates in the costs.
One-third of people said they would consider disability insurance if they knew more about it. This is where advisors can play an important role to help clients better understand disability insurance and determine the right amount of coverage for their situation.
Disability Insurance Awareness Month remains an important effort to remind Americans about the importance of protecting their paychecks.
For more information, please see the 2015 Disability Insurance Awareness Fact Sheet.
About Life Happens: Life Happens is a nonprofit organization dedicated to helping consumers take personal financial responsibility through the ownership of life insurance and related products. The organization does not endorse any product, company or insurance advisor. Since its inception in 1994, Life Happens has provided the highest quality, independent and objective information for people seeking help with their insurance buying decisions. The organization supports the insurance industry by providing marketing tools and resources and convening the industry each September for Life Insurance Awareness Month. Life Happens is supported by more than 140 of the nation’s leading insurance company and financialservices organizations. To learn more, visitwww.lifehappens.org.
About LIMRA: LIMRA is a worldwide research, consulting, and professional development organization that helps more than 850 insurance and financial services companies in 64 countries increase their marketing and distribution effectiveness. Visit LIMRA at www.limra.com.