A LIMRA study reveals that on average, U.S. consumers could correctly answer only 3 out of 10 questions in a survey on disability insurance. The online survey asked consumers a series of true/false and multiple choice questions to gauge their understanding and basic knowledge of disability insurance.
Key findings from the survey include:
- Only 4 percent of consumers demonstrate a high level of knowledge (seven or more correct answers) about disability insurance policies
- Nearly 75 percent of consumers correctly answered fewer than five questions
- There is almost no difference in the scores of those who had personal experience with disability and those who did not.
Because so few Americans have disability insurance only a small percentage truly understand the product. Lack of product knowledge is a legitimate concern for advisors who sell disability insurance. Among those who shop for disability insurance but don’t buy, indecision and lack of knowledge are cited more than cost as the reason they did not buy.
The good news is that many consumers said they know their lack of knowledge is a risk they face and don’t understand. The most common response to the survey questions was “I don’t know.” Respondents also said the financial impact of a disability is their second-highest concern after saving enough for retirement.
Take the Disability Insurance test here to see how much you know about this important product.