Most consumers believe that accidents are the primary cause of disabilities, but research shows that over 95 percent of disabilities are not work related; therefore workers’ compensation cannot be used. Here are some interesting statistics about disability insurance, and what consumers tend to believe:
- Musculoskeletal/Connective Tissue Disorders are the leading cause of disability at 28 percent, while cancer is the second leading cause at 15 percent
- Consumers believe their own “personal odds” of becoming disabled are 1 in 100, when in fact 1 in every 4 Americans in the workforce will become disabled
- Approximately 42 percent of consumers believe that they would rely upon sick leave and vacation if disability struck them
- 37 percent of consumers have never thought about how they would protect their income if they got sick or hurt
As you can see from these statistics, it is crucial to be educated about the risk of income loss and how to better prepare for it. Nearly 70 percent of consumers think that it’s important to start planning for a loss of income at any age.
How do you plan to maintain your financial independence if an illness or injury prevents you from earning an income?