The Hidden Value of Social Security Disability Insurance: Why It’s Important During Benefits Enrollment
Disability insurance?
Yes, basic disability insurance is most affordable way to protect your income should you become disabled by illness or accident. However, about 50-million working Americans don’t have this basic income-protection insurance coverage.
Why It’s Important Now for Gen Xer’s
As this generation reaches age 50, the odds of becoming disabled are higher. If you’re a Gen Xer between 44-54 and in good health, it’s tempting to think that you’re at the point where disability insurance isn’t really necessary. However, data shows that 1-in-4 people will become disabled and primarily from an unexpected illness. Today, 90% of disabilities are caused by illnesses, including cancer, heart disease, and arthritis. Only 10% of disabilities are the result of accidents.
Most Disabilities Happen Outside the Work Place
This is where the numbers get important. You may have Workers’ Compensation where you work, but close to 95% of disabling accidents and illnesses are not work-related. Common causes are disabilities most people can’t see, including back or neck problems, depression or other emotional issues as well as arthritis.
For Gen X, It’s Your Most Valuable Workplace Benefit
If you didn’t sign for disability insurance where you work, talk to your employer soon. Nearly 80% of all U.S. employers offer short-term and long-term disability benefits, but fewer than half of all workers take advantage of the benefit. When you talk with your employer, ask about any supplemental options that might offer even more comprehensive coverage. If there is no workplace plan option available, you can get individual disability insurance through any insurance provider, although it will likely cost more.
How Important Is Disability Insurance For Gen X?
A recent study from Mathematica’s Center for Studying Disability Policy found that newly disabled workers in their 50s and early 60s see their earnings decline by an average of 50% two years after they develop their condition. For Gen Xer’s, looking ahead is the hard-to-avoid statistic by the CDC that 75% of Americans aged 65 and over have multiple chronic conditions, which can include diabetes, high blood pressure and arthritis.
Hey Millennials: “It’s Not Going to Happen to Me.”
If you read this far, maybe it was the government data that shows 1-in-4 of your generation will in fact, experience a disability, and primarily from an illness – not an accident. You’re at least a full decade away from age-50, but the same need for disability insurance applies to you. The good news, is that enrolling now costs much less and will stay lower over time.
About The Council for Disability Awareness
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