When most people think about their biggest asset, many think of their home or 401(k) account, but it’s really their lifetime earning potential, which could be in jeopardy if they were to become injured or disabled.
May is Disability Insurance Awareness Month (DIAM). LIMRA is proud to support this industrywide initiative to raise awareness about the importance of income protection.
The absence of emergency savings, rising medical costs, and an overall trend of fewer employers offering benefits to workers has created a uniquely challenging time. The pandemic has highlighted how important income protection is, and the potentially severe consequences Americans could face if they had to miss work due to illness, injury or pregnancy.
Today, just 14% of Americans say they have disability insurance, down from 31% in 2012. Yet, almost half of Americans — 48% — acknowledge they need disability insurance and 45% of families would face financial hardship within six months if a primary wage earner became disabled and unable to earn income.*
The three most common reasons for not having coverage are:
- It is too expensive
- Have other financial priorities
- Don’t feel I need it
According to LIMRA data, 38% of consumers mistakenly believe that disability insurance pays their full salaries until they can return to work.
As we have seen from the recent pandemic, life can change quickly. An illness or injury could take away the ability to earn a living. An income in the form of a steady paycheck is your most valuable asset and provides for an individual and their loved ones. Protecting a paycheck with disability insurance can secure a family’s financial future.
LIMRA put together a fact sheet to highlight disability insurance ownership trends and knowledge about the need for this type of coverage.
*Statistics cited reflect the entire adult population.