Disability Insurance Statistics
Need for Protection
A disability can happen to anyone…at any time.
- At age 40, the average worker faces a 43% chance of being disabled for 90 days or more prior to age 65
- 51.2 million Americans have some level of disability (18% of the population)
- In the U.S., a disabling injury or illness occurs every 1 second
- 62% of all personal bankruptcies and ½ of all home foreclosures in the US were due to an inability to pay for medical expenses
- 71% believe disabilities are most likely caused by serious accidents, but in reality, most are caused by illness or medical conditions
Causes of Disability
Illnesses generally cause disabilities, not accidents.
- Over 85% of disabling accidents and illnesses are not work related
- While many people think that disabilities are typically caused by freak accidents, the majority of long-term absences are actually due to illnesses, such as cancer, stroke, and heart disease
Disability Duration
An average disability may last longer than you think.
- The average duration of a long-term disability is 2.5 years
- 20% of Americans will become disabled for 1 year or more before the age of 65
Disability Costs
Indirect and direct costs of a disability take financial tolls on everyone.
- 69% of workers in the private sector have no long-term disability insurance
- 65% of working Americans say they could not cover normal living expenses for a year. 38% could not pay their bills for more than 3 months
Misconceptions
Common back-up plans to loss of income may not be an option.
- 65% of Social Security Disability Insurance (SSDI) claims were denied in 2009
- 97% of SSDI beneficiaries receive less than $2,000 per month. The average monthly benefit as of June 2010 is $1,065 per month
Sources:
- Insurance Information Institute, www.iii.org November, 2005
- Social Security Administration Disability Benefits Publication; National Vital Statistics Report, 1999
- U.S. Census Bureau, July, 2006
- Social Security Administration, 2007
- U.S. Census Bureau, American Community Survey, 2007
- 2005 Field Guide to Estate Planning, Business Planning & Employee Benefits, by Donald Cady
- National Safety Council®, Injury Facts® 2008 Ed.
- Social Security Administration, Fact Sheet, January 31, 2007
- U.S. Census Bureau, American Community Survey, 2007
- JHA Disability Fact Book, 2006
- June 4, 2009. The American Journal of Medicine Council for Disability Awareness, 2007 Disability Awareness Survey
- National Safety Council®, Injury Facts® 2008 Ed.
- Life and Health Insurance Foundation for Education November, 2005
- Centers for Disease Control and Prevention, 2007
- JHA Disability Fact Book, 2006
- Life and Health Insurance Foundation for Education. November 2005
- Social Security Administration, Fact Sheet, January 31, 2007
- 2005 Field Guide to Estate Planning, Business Planning & Employee Benefits, by Donald Cady
- National Safety Council®, Injury Facts® 2008 Ed.
- Integrated Benefits Institute, IBI News September 8th, 2006
- Integrated Benefits Institute, IBI News September 8th, 2007
- Marsh/Mercer Health & Benefits, “Health, Productivity and Absence Management Programs”, 2006 Survey report
- CCH and Harris Interactive, “2006 CCH Unscheduled Absence Survey,” October 2006
- JHA 2005 Absence Management Survey, “Big-picture benefits: Integrating FMLA and disability claims data helps reduce absenteeism,” by Chris Silva, September 2006
- Integrated Benefits Institute, IBI News September 8th, 2008
- Disability Literacy: How Consumers Rate Today, April 2005, The Hartford
- Social Security Administration, Office of Disability and Income Security Programs
- Social Security Administration, Fact Sheet 2008
- U.S. Census Bureau, American Community Survey, 2007
- National Safety Council®, Injury Facts® 2008 Ed.
- Social Security Administration, Fact Sheet 2007