Most disabilities, on average, can keep an employee out of work for roughly three months, and yet, only about a quarter of employees say they currently have disability insurance.
Currently, 61% of Americans believe most people need disability insurance while only 26% said they owned any, according to new research from LIMRA. One-third said they would consider disability insurance if they knew more about it, revealing an important opportunity for employers to better educate employees.
The good news, according to Aon Hewitt, is that a majority (87%) of employees do have relatively strong grasp of disability insurance.
However, according to the Council for Disability Awareness, one-third say they cannot afford disability insurance when asked what they think it costs, women estimated $50 a month on average and men said $60 a month, LIMRAs research shows.
There is a 30% chance of a person suffering a disabling illness or injury that would keep them out of work for three months or more, according to the study. In a separate study, 30% of full-time employees said they are not confident about paying their bills if they or another family member was out of work for three months.
Insurance statistics show that only 9% of long-term disabilities actually resulted from serious accidents. Social Security Disability Insurance statistics show more than one-third of workers receive benefits for musculoskeletal issues with the most common examples being back problems, joint pain and muscle pain.
While sick leave and vacation time are certainly helpful, the benefits from them usually run out in a matter of weeks at a time when the expenses are often increasing, LIMRA says.
But there is no immunity to your employees falling ill. According to SSDI data, one-in-four of todays 20-year-olds will suffer a disability before they retire. Further, LIMRA research shows six-in-10 Generation X and Y consumers reported an income loss due to illness or injury having a significant financial impact on their households.
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