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Disability Insurance  Disability Statistics |
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| 1. Specific Causes of Disabilities |
| Many individuals believe that in order to be disabled, they would have to be paraplegic,
when in reality, that is not necessarily true. Many individuals have the idea that, “If I can
think, see, and type on my computer then I can work” when it comes to disability
insurance. In actuality, only 13% of those who are disabled are due to injury (National
Institute on Disability and Rehabilitation Research, 1992), illness is what stops you from
doing your job. In case, you are not aware of it, illnesses do not have emotions; they do
not care what you do for a living, and many times will disable individuals who are
computer technicians, lawyers, nurses, or salesmen. So, please request a disability
insurance proposal now to start the process of buying disability insurance so that none of
the impairments listed below will ever keep you from bringing home a paycheck. |
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| Impairment |
Total Percentagen of Disability Claims |
| Back/Spine |
18.2% |
| Psychiatric & Emotional |
12.7% |
| Neurological |
11.3% |
| Extremities |
9.0% |
| Cardiovascular |
4.1% |
| Diabetes |
3.6% |
| Substance Abuse |
3.3% |
| Hearing |
2.9% |
| Vision |
2.6% |
| Blood Disorders |
2.6% |
| Cancer |
2.3% |
| Asthma |
1.7% |
| Other |
25.7% |
| Source: HIAA Source Book of Heath Insurance Data 1999-2000 |
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The chart above displays the various statistics on disability insurance claims. As a
consumer, you must always make sure that the policy you select protects you from some of the
leading causes of claims, particularly the psychiatric and emotional disorders. The chart above
shows that 12.7% of claims come from psychiatric and emotional disorders and many of our
competitors are now restricting benefits paid for mental and nervous disabilities to only two
years.
As of today, I have not met anybody who has no history of mental health issues and who is
worrying about this area of a policy. There is not one person who thinks that they will ever
develop a mental or nervous problem which in turn will disable them. This is how most claims occur because you do not just wake up depressed. Individuals develop these various problems
after watching a husband or children go through chemotherapy, struggling with a serious
problem at work or at home, or from a catastrophic event. If you were to restrict 12.7% of these
possible claims by choosing a different company who capped benefits to two years, then you are
purchasing less coverage than we offer. |
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| 2. Odds of Death vs. Disability |
| Death and disability are two threats that could prevent you for earning an income. There
is no way of knowing when an individual may pass away, but we all know that it is
inevitable. On the same token, disability is also uncertain, but what is the probability of
you becoming disabled before you reach the age of 65? |
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| Death vs. Disability between the Ages of 25 and 60 |
| Age |
Death |
Disability |
| 25 |
24.1% |
34.8% |
| 30 |
23.5% |
33.1% |
| 35 |
22.8% |
31.3% |
| 40 |
21.8% |
29.1% |
| 45 |
20.4% |
26.3% |
| 50 |
18.3% |
22.6% |
| 55 |
14.9% |
17.6% |
| 60 |
9.3% |
10.6% |
| 1985 CIDTA, male, 30 day elimination period, top occupational class, and the 1980 CSO. |
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| You have a better chance of becoming disabled than dying! |
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| 3. The Reality During A Disability |
| Our Possible Underwriting Action Database is State Of The Art |
Your income is killing two birds with one stone. It provides today’s basic provisions,
luxuries, and serving as the groundwork of your future plans. As long as you earn an
income, you have the ability to accumulate assets.
The graph below displays what your reality could look like if you become disabled and
do not have disability insurance. Keep in mind that you can only purchase disability
insurance while you are still healthy, on the occasion that you become sick or injured you
can no longer purchase a personal disability insurance policy to safeguard you and your
family. |
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| But what happens if a disability should strike? |
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You would still need the basic provisions of life |
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Any plans for retirement, children’s education, etc. would have to be put aside |
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You would have to live without the luxuries you living with prior to the disability but
would still be obligated to pay your mortgage, car, and credit card payments. |
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| 4. Chances of a Long Term Disability |
Below is the 1985 Commissioner’s Disability Table which provides exceptional data on
an individual’s risk of suffering a long term disability where they would require you to
have a personal disability insurance policy in order to provide a source of income. These
sets of data are compelling, particularly to individuals who think they are invincible.
There should be no reason for you to live without disability insurance unless you are very
wealthy, and do not need to work except for pleasure. So do not hesitate to request a
quote now to start the process of buying your own personal disability insurance policy.
These are the percentage of individuals who can expect to endure a long term disability
of 90 days or more before they reach the age of 65. |
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| Age |
Percentage |
Disabled |
| 25 |
52% |
1 of 2 |
| 30 |
51% |
1 of 2 |
| 35 |
48% |
4 of 9 |
| 40 |
45% |
4 of 9 |
| 45 |
40% |
2 of 5 |
| 50 |
34% |
1 of 3 |
| 55 |
27% |
1 of 6 |
| 60 |
16% |
1 of 6 |
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The Chances A Disability Lasts Longer Than Expected
It is probable that if a disability of 90 days or more last two years, it will more than likely
continue longer, even for a lifetime. |
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| Age when disabled 90 days |
Percentage still disabled after
2 years and
90 days |
Percentage still disabled
after 5 years |
| 25 |
63.5% |
44.2% |
| 35 |
69.7% |
52.6% |
| 45 |
73.6% |
58.0% |
| 55 |
77.6% |
59.6% |
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| Many individuals believe that disabilities are short term in nature, but that is simply
untrue. There are many individuals that read the long term disability insurance statistics
on this page and look at them in disbelief. Yes, there is a very considerable chance that
you are going to need to have disability insurance during your working years. Some of
the causes of disabilities could leave you unable to work for a long period of time. |
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| 5. Alternatives to Disability Insurance |
Ask Yourself This One Important Question
Is my most valuable asset is safeguarded as well as my other assets? Simply, if you
become sick or injured and could not work, would you have enough income to continue
paying your bills? If you believe that you are already covered, think again.
Halfway Measures
Many of the alternatives used to replace income are only halfway measures. |
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You cannot rely on Social Security |
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It is very difficult to qualify for Social Security benefits because the disability has to
prevent you from doing any kind of work, not just your typical occupation. Social
Security’s definition for disability is that one must be completely disabled with no
hope of recovery for a period of at least one year or have a disability expected to end
in death.
If you think you could just live on Social Security alone, think again. |
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You cannot rely on Worker’s Compensation |
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Worker’s Compensation only compensates you if you became sick or injured while
you were working. Additionally, these benefits are limited. |
| 3. |
You cannot rely on your savings, on your family or on a bank loan. |
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Even if you saved 5% of your income each year, a six-month disability would still
wipe out ten years of savings, and when your savings disappear than your other assets
will start to diminish too. Do you think your family and friends would be willing to
help you out after you had lost everything? Even a bank would not give you a loan if
you were disabled and had no income because there would be no guarantee of you
paying them back.
The Sure Thing
If you want to be certain that your income is adequately safeguarded while you are
disabled, then you should purchase a disability insurance protection plan. Even
though that plan could be designed to fit your individual needs, it is only good as the
representing company and the disability insurance policies that stand firm behind it. |
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| 6. Potential Loss of Income |
If you are having a difficult time with your income now, what would you do if you have
no income at all?
If you can see from the chart provide below, there is one that has the most to lose early in
their life. One thing that it does not show is the odds of a person making $2,000 a month
at age 25 would probably increase his rates as time progressed. So, the loss of income
would be even greater if a long term disability strikes. |
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| Potential Loss of Income |
| Age when disabled |
25 |
30 |
40 |
50 |
| Monthly Income |
$2,000 |
$4,000 |
$6,000 |
$8,000 |
| In one year you would lose |
$24,000 |
$48,000 |
$72,000 |
$96,000 |
In two years you would
lose |
$48,000 |
$96,000 |
$144,000 |
$192,000 |
| In five years you would lose |
$120,000 |
$240,000 |
$360,000 |
$480,000 |
| By age 65 you would have lost |
$960,000 |
$1,680,000 |
$1,800,000 |
$1,440,000 |
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| Purchasing a disability insurance policy should be mandatory, and should not be a
decision that you need to contemplate about. So request a free disability insurance quote
today to start the process of purchasing the product. It is essential, and is foundation
product every working person needs to ensure that they can maintain their current
lifestyle if they happen to become disabled. Disability insurance ensures that if you
become sick or injured that you will continue to receive an income to pay your bills if
you unable to perform the material and substantial duties of your regular occupation. |
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| 7. Basic Disability Insurance Odds |
Some Interesting Information Illustrating The Need For Disability Insurance
The Society of Actuaries and The Commissioners Disability Table states that if you are
much more likely to suffer from a disability than being in an auto accident, dying or
having a fire in your home. Many individuals do not realize the odds of suffering from a
long term disability during your lifetime. As medical technology advances, the
likelihood of surviving an illness or accident increases. In the past, certain diseases were
seen as a death sentence but today it means a period of a long term disability during
which you can recover from the treatment. Cancer is a perfect example of a disease that
more and more individuals are beating every day with the advanced medical technology,
however, throughout chemotherapy the majority of individuals cannot go to work
everyday. In the past, heart attacks used to kill a larger percentage of individuals than
they do now, however after having surgery, the majority of individuals need to take off
several months.
Death – 1 out of 106 people
Home Fire – 1 out of 88 homes
Serious Auto Accident – 1 out of 70 autos
Disability – 1 out of 8 people (at least 8 days)
Additional Disability Statistics
7 out of 10 claims for Social Security disability insurance benefits were initially denied.
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1 out of 7 employees will be disabled for 5 years or more before retirement.*
Between ages 35 and 65, 7 out of 10 people will become disabled for three months or
longer. **
Disability is 16 times more likely than death to cause foreclosure. ***
*Commissioners Disability Table, 1998, **Senate Finance Committee, 1998, ***Federal
Housing Administration |
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