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Women have a 54% chance of becoming seriously disabled during
their working years.
One in four women dies from heart disease. It’s the #1 killer
of women, regardless of race or ethnicity. It also strikes at younger
ages than most people think, and the risk rises in middle age. And,
two-thirds of women who have heart attacks never fully recover.
How Solid Is Your Financial
Foundation?
This diagram shows how to make plans for your
financial future. Protecting assets is the foundation of a
solid financial plan. Insurance helps you prepare for the
unexpected: property damage, medical expenses, loss of life,
and loss of income due to disability.
Removing your income from the foundation can
cause your financial plan to come tumbling down. When you
fail to protect your income, your dreams for a comfortable
retirement, college for the kids, or passing on assets may
not becomea reality.
Successful Financial Strategy
| Odds for Marks |
Covered by Insurance |
| 1 out of 5
1 out of 21
1 out of 96
1 out of 114 |
that your auto will
be damaged in an accident
that you will have a disabling accident
that you will have a fire
that you will die |
Source: Field Guide 2001, National
Safety Council, World Almanac
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| Did you know: During the
course of your career, you are three anda half times more
likely to be injured and need disability coverage than you
are to die and need life insurance.
Source: Health Insurance Association
of America, 2000 |
|
Approximately 30% of all people ages 35 to 65
will suffer a disability for at least 90 days, and about one
in seven can expect to become disabled for five years or more.
Source: Health Insurance Association
of America, The New York Times, February 2000
|
Are You Planning a Long
Vacation?
You probably plan ahead, even for a short vacation. But, you
may not have planned ahead for an unexpected "vacation"...a
long-term disability. The conditions listed below could
leave you unable to work for a month, six months, or even
longer.
| Condition Causing
Limitation |
Number (in thousands) |
Percent of all Condition |
| Heart Disease |
7,932 |
13.0 |
| Deformities, orthopedic
impairments & disorders of the spine or back |
7,672 |
12.6 |
| Osteoarthritis and
allied disorder |
5,048 |
8.3 |
| Orthopedic impairment
of lower extremity |
2,817 |
4.6 |
| Asthma |
2,592 |
4.2 |
| Diabetes |
2,569 |
4.2 |
| Mental Disorders |
2,035 |
3.3 |
| Cancer |
1,342 |
2.2 |
* Source: “Health Conditions
and Impairments Causing Disability”, U.S. Department
of Education, National Institute on Disability and Rehabilitation
Research (NIDRR). Abstract No. 16, Table 2, September, 1996
- Most people have savings to cover less than 6 months
of expenses
Source: Business Almanac, 1997 |
| |
|
- Of that total more than 50% were aged between 21 and
64
"Americans With Disabilities:
2002," U.S. Bureau of the Census, May 2006
|
- A disabling injury happens every 2 seconds.
“Injury Facts”,
National Safety Council, 2004 |
|
- Upwards of 375,000 Americans become totally disabled
every year.
- 3 in 10 workers entering the work force today will become
disabled before retiring.
Social Security Administration,
Fact Sheet 2007
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There is a common misconception
about what a disability is. Most people think ‘paraplegic’
when they hear the word. Total disability injuries account
for only a small percentage of all disability claims.
- 18% of claims were attributed to back disorders
- Cancer, asthma, diabetes and cardiovascular illnesses
account for almost 15% of claims
- Loss of hearing and vision accounts for 5% of claims
Health Insurance Association
of America, Source book of health insurance data, 1999-2000 |
|
- Men have a 43% chance of becoming seriously disabled
during their working years.
Chart Sourced from: Disability
Insurance: A Missing piece in the financial security puzzle,
American Health Insurance Plans, Society of Actuaries, 2004
|
Having a disability
can significantly affect your ability to work
- 1 in 3 Americans under the age of 35 will be disabled
for at least 6 months during their careers.
“Disability insurance
facts”, ProtectYourIncome.com, 2006, http://www.protectyourincome.com/disability-insurance-facts.asp |
|
- An illness or accident will keep 1 in 5 workers out
of work for at least a year during their working careers.
U.S. Census Bureau, December
1997
|
- 1 out of 7 Americans aged between 35 and 65 can expect
to become disabled for five years or more.
- The average long-term disability absence lasts 2.5
years.
"Commissioners Disability Table,
1998," Health Insurance Association of America, the New
York Times, February 2000
|
The fact is that most American workers cannot
afford to become disabled
- Two-thirds of American families live from paycheck
to paycheck
"Is the American Dream Still
Possible?", Parade Magazine, , April 23, 2006
|
- More than 70% of American worker do not have enough
savings to meet short-term emergencie
National Investment Watch Survey,
A.G. Edwards Inc. 2004 |
- Federal Reserve Board, Survey of Consumer Finances 2004
Social Security Administration,
Fact Sheet 2007 |
- For the average American household, the savings rate
is negative, its lowest rate since 1933.
- Credit card debt is at an all-time high, Americans owe
an average of $9,300
"Is the American
Dream Still Possible?", Parade Magazine, , April 23, 2006 |
- Over 50% of the workforce has no private pension coverage
and a third have no retirement savings
Social Security Administration,
Fact Sheet 2007
|
It is no wonder that experiencing
a disability can cause serious financial hardships.
- Unexpected illnesses and injuries cause 350,000 personal
bankruptcies each year
"Illness and Injury as Contributors
to Bankruptcy," Health Affairs, February 2, 2005 |
- Disability causes nearly 50% of all mortgage foreclosures
- Only 2% are caused by death.
Health Affairs, The Policy
Journal of the Health Sphere, 2 February 2005
|
Most Americans are not
covered by disability coverage
- Over 100 million workers do not have private disability
income insurance.
Council for Disability Awareness,
Long Term Disability Claims Review, 2005 |
- 70% of the workforce in the private sector has no long-term
disability insurance.
Social Security Administration,
Fact Sheet 2007
|
- Most Americans are better prepared financially in case
of death.
“Disability insurance facts",
ProtectYourIncome.com, 2006, http://www.protectyourincome.com/disability-insurance-facts.asp |
The potential loss of income if a long-term disability occurs
is as follows:
|
Is Social Security and
Workers compensation enough?
- Over 90% of disabling accidents and illnesses are not
work related.
“Injury Facts", National
Safety Council, 2004 |
- In 2005, 2.4 million people filed disability claims
with Social Security
- Only 39% were approved.
“Disability Statistics",
Council for Disability Awareness, 2006
|
- The average monthly Social Security Disability Insurance
benefit is $978.
Social Security Administration,
Fact Sheet 2007 |
- Over 6.8 million workers are receiving Social Security
Disability benefits. This represents only 13% of the over
51 million Americans classified as disabled.
Social Security Administration,
Fact Sheet 2007
Chart Sourced from: “Disability
Insurance: A Missing piece in the financial security puzzle",
American Health Insurance Plans, Society of Actuaries, 2004
|
- To qualify for Social Security Disability you have to
have worked at least 10 years before becoming disabled
“Disability insurance facts",
ProtectYourIncome.com, 2006, http://www.protectyourincome.com/disability-insurance-facts.asp |
Disability insurance is one the least expensive insurance
coverages
Chart Sourced from: “Disability
Insurance: A Missing piece in the financial security puzzle",
American Health Insurance Plans, Society of Actuaries, 2004
|
As case studies demonstrate, many Americans are unprepared.
- According to the Department of Labor, only 29% of workers
had employer-sponsored coverage for long-term disability
in 2006.
“When illness or injury
strikes: Disability policies can help keep you afloat financially,
but chose with care", (Online), Consumers Union of US, Inc,
June 2007, http://www.consumerreports.org/cro/money/insurance/disability/disability-6-07/overview/0706_disability_ov.htm |
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