Need for Income Protection

Chances of Becoming Disabled

  • Just over 1 in 4 of today’s 20 year-olds will become disabled before they retire. 1
  • Over 18 million working age Americans, aged 18-64, are classified as disabled. 2
  • 61% of wage earners surveyed personally know someone who is disabled and unable to work for 3 months or longer. 3
  • The average long-term disability claim duration is 31.2 months. 4
  • The actual odds of a worker entering the workforce today becoming disabled for 3 months or more are about 30%. 1

Disability Causes Severe Financial Hardship

  • 60% of adult Americans have no savings earmarked for emergencies. 6
  • 71% of Americans would find it very difficult to meet their current financial obligations if their next paycheck was delayed one week. 7
  • About 100 million workers are without private disability income insurance. 1
  • 67% of workers have no long-term disability insurance. 1
  • 95% of disabling accidents and sicknesses are not work related; meaning worker’s compensation does not cover them. 5
  1. Social Security Administration, Fact Sheet March 18, 2011
  2. U.S. Census Bureau
  3. CDA Disability Divide proprietary research March 2010, http://www.disabilitycanhappen.org/research/consumer/
  4. 2010 Gen Re Disability Fact Book
  5. Council for Disability Awareness, Long-Term Disability Claims Review, 2011 http://www.disabilitycanhappen.org/research/CDA_LTD_Claims_Survey_2011.asp
  6. Federal Reserve Board, Survey of Consumer Finances, 2007
  7. American Payroll Association, “Getting Paid in America” Survey, 2008