In America approximately 30 percent of people will become disabled during their working years. And as many as half of all personal bankruptcies are due to disability. With these figures in mind, it’s worth taking a look at disability insurance, which is often overlooked or misunderstood.
According to EF Moody’s disability statistics, the top five reasons for long term disability claims are as follows (source: http://www.efmoody.com/insurance/disabilitystatistics.html July 17, 2007):
· Cancer
· Complications from pregnancy
· Back
· Cardiovascular
· Depression
The top five reasons for short term disability claims are very similar and are:
· Pregnancy (normal)
· Pregnancy (complications)
· Injuries (excluding back)
· Back
· Digestive/Intestinal
Our own Valerie Reeves found herself relying on short-term disability insurance at the first of the year when a fall on the ice lead to surgery and several weeks of recovery.
Looking at the numbers
In a 2003 Social Security Administration (SSA) study there were a number of sobering statistics revealed. The SSA estimates that three in ten of today’s 20 year olds will suffer a disability before reaching the age of 67. The same study revealed that three of four individuals working in the private sector do not have any long-term disability insurance benefits.
What does this mean? With no income from sources such as disability insurance, an employee would have to rely on his or her own personal savings in addition to state and social security disability benefits. In 2006, the average monthly replacement income received from social security disability was $977.70, (source: http://www.ssa.gov/policy/docs/statcomps/di_asr/2006/index.html#highlights Sept. 12 2007), which equates to $11.732.40 a year. This amount is significantly lower than average monthly expenses. When assessing an individual’s monthly financial needs including house payment or rent, utilities, car payment, loans, etc., it becomes evident that additional sources of income are needed when a person becomes disabled.
Preferred Benefits LLC has established a relationship with American United Insurance Company® (AUL), which is offering both voluntary group long-term and short-term disability insurance coverage to eligible employers and their employees. AUL also offers both employer-paid and employee-paid group life insurance coverage. AUL’s group insurance products offer flexible solutions for an employee’s life and disability insurance needs.
At Preferred Benefits LLC we can help you do a realistic assessment of your current insurance portfolio. We can make suggestions that may save you money and in other cases even expand your coverage for the money you are currently spending. Such an assessment should be done annually.
Please contact us for a FREE assessment of your insurance portfolio. This personalized customer service is a cornerstone of our business. We look forward to being of service to you.
TOLL-FREE 877-302-5810
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