You go to the gym a few times per week. You eat a well balanced diet that’s even included kale in the past week.
That’s why you’re more likely to be thinking about investing in a personal trainer than buying disability insurance. After all, there’s virtually no chance you’ll need that until you get older, right?
Maybe. Recently surveyed by the CDA, most workers thought their odds of becoming disabled for at least three months were only one percent. Yet, more than 25 percent of today’s 20-year-olds will become disabled before they retire.
Illnesses or accidents which are the leading cause of a disability claim can strike at any time, no minimum age required.
Why is There a Disability Insurance Awareness Month?
Disability insurance replaces a portion of your income if you are unable to work due to an illness or injury.
Although many workers have disability insurance available through their employer, more than half of the American workforce has no private disability insurance. That means if they are unable to work, they’re stuck draining their emergency savings fund (if they have one), or going into debt while they recover.
And what if that short spell of unemployment becomes permanent?
More than two-thirds have no long-term disability insurance. Without long-term disability insurance you must rely on government programs, such as Social Security Disability Insurance, if you experience a long-term loss of income.
Recipients of SSDI benefits who earn $30,000 per year or more may find it challenging to meet their financial obligations when receiving payments of less than half their prior income.
This annual month-long awareness campaign was created by LifeHappens to help start a public conversation around the impact disability has on American workers, and how disability insurance can protect them from loss of income and financial difficulties in its wake.
Debunking Disability Myths
In your 20s and 30s, you’re focused on building your career and starting your family. As you plan for and save towards those goals, it’s also important to think about how you can prepare for unexpected time away from work.
If you’re a woman planning to start a family, this is even more important. From 2011 to 2012, new long-term pregnancy-related claims increased 24 percent, accounting for 12.3 percent of all new disability claims by women.
Although many people equate disability with a serious accident or rare illness, a disability that results in time away from work is a lot more likely to happen as a consequence of living life day-to-day.
You insure your car and your house, yet they aren’t your most valuable asset. Your ability to earn a living is. Shouldn’t it receive the same attention?
We created this infographic to help debunk some common misconceptions about the need for disability insurance, and act as a starting point for having this conversation with your family, employer, and financial advisor.