Why Millennials Need to Think about Disability Insurance
Millennials are shaping up to be one of the most influential and unique generations of all time. They’re already the biggest population in US history, consisting of 92 million people (compared to 77 million “baby-boomers”), and they currently make up close to half of the American workforce. One thing that sets millennials apart from past generations is the concept of living life in the moment versus preparing for the future, which may be a result of a shifting global economy and changing workforce. One thing is for sure, however—many millennials scoff at the idea of purchasing disability insurance.
As nice as it would be to have invincibility on our sides, no one does, and no one—not even millennials—can predict the future. Here are just a few reasons why millennials need to think about getting disability insurance sooner than later.
1. The Chances Just Aren’t That Slim
One of the main reasons why people ignore the importance of disability insurance is because they believe disability will not happen to them. In many cases, these same individuals believe that disability only results from injury or “slip and fall” accidents—not true. In fact, chronic diseases such as cancer and heart disease have been identified as the leading causes of disability, not to mention risks associated with obesity and arthritis. One-in-four of today’s 20-year-olds will experience disability prior to retirement, and when the numbers are that high, securing disability insurance begins to make all the sense in the world.
2. Your Income Depends Upon It
Millennials are poised to make up approximately 75% of the global workforce by 2025. It’s an impressive percentage by any measure, and one which lends credence to the importance of having income protection. Statistically, 50% of 35-year-olds can expect to be out of work for a period of 90 days or more before reaching the age of 65. This equates to three months or more of lost income for those who do not have disability insurance deployed as a safety blanket, which, for many, can lead to foreclosure or eviction.
3. You May Not Be Eligible for Social Security Disability Benefits
When most people think about Social Security, retirement is what comes to mind. But Social Security disability benefits may also apply to those who cannot work due to a medical condition . Unlike private disability insurance, however, relying on Social Security disability benefits in the event of an incident can be risky, as 65% of initial claim applications are denied. Even if you do get awarded benefits, you need to be out of work for 12 months or more to collect—not ideal by any means.
Nearly 70% of U.S. workers have no long-term disability insurance. But with income protection on your side, you can enjoy the peace of mind associated with knowing that you have a financial safety net, should something come out of left field.