/// By Aviva Sapers
May is Disability Awareness Month, a time to shine a light on the realities of living with disabilities—and the financial protections that can help cushion the blow of an unexpected illness or injury.
Disability insurance is one of those things people rarely think about until they need it. But here’s the truth:
- 4 out of 5 people are uninformed about disability insurance.
- Over 1 in 4 of today’s 20-year-olds will experience a period of disability before retirement.
*Source: https://www.ssa.gov/disability
And yet, many workers assume that their benefits at work or government programs will fully protect them. Unfortunately, that’s often not the case.
The Hidden Risks of Disability
It’s easy to think, “It won’t happen to me.” But statistics tell a different story:
- 92% of adults worry about how they’d cope financially if as a wage earner they couldn’t work.
- 49% of disabled workers had to dip into savings or retirement funds to cover expenses during a period of disability.
- The most common causes of long-term disability aren’t accidents—they’re illnesses like:
- Musculoskeletal disorders (27.6%)
- Cancer (15.0%)
- Injuries such as fractures/sprains (12.0%)
- Mental health issues (9.3%)
- Circulatory conditions (heart attacks, strokes) (8.2%)
*Source: Council for Disability Awareness
What Happens If You Can’t Work?
Any sort of disability can disrupt your financial life if you cannot work. Your mortgage, rent, and medical bills don’t stop just because your paycheck does. Worse yet, a disability at a younger age often means being out of work longer—stalling your income and halting your long-term financial goals like retirement savings.
Government vs. Private Disability Insurance
U.S. government programs offer some support:
- SSDI (Social Security Disability Insurance): Helpful but slow, with the average monthly benefit at just $1,537. (Does this have a 1 year waiting period to qualify?)
- SSI (Supplemental Security Income): Limited to low-income individuals.
These programs have strict qualifications and may not be enough. That’s why many look to private disability insurance for more dependable and comprehensive coverage.
How Private Disability Insurance Protects You
Private disability insurance typically covers 50-70% of your income and offers:
- Faster benefits—no years-long waiting.
- Higher payouts—better income replacement.
- Broader coverage—for a wider range of conditions.
Types to know:
- Short-Term Disability (STD): 3-6 months of coverage (often employer-provided).
- Long-Term Disability (LTD): Covers serious conditions, lasting years or until retirement.
Why Education Matters
Many people underestimate the likelihood of disability and fail to plan ahead. That’s why educating yourself and your clients is key. As experts, we can help assess your income protection needs.
We’re here to help you—or your employer—build a comprehensive disability protection plan that truly prepares you for the unexpected.
Final Takeaway
This Disability Awareness Month, take a moment to assess your coverage. Whether you’re an employer aiming to strengthen your benefits program or an individual thinking about your financial security, remember:
Disability insurance isn’t just about protection—it’s about peace of mind because while we can’t predict the future, we can prepare for it.
