Is Disability a Threat to Me or My Family?
When it comes to suffering a disability, we all tend to think that “It can’t happen to me!” In fact, when assessing their own chances of becoming disabled, most people set their likelihood at 1 in 100 or 1 in 50.1
News Flash: 3 out of 10, or 30% of Americans entering the workforce will become disabled before they retire.2
News Flash: In the U.S. a disabling injury occurs, on average, every second.3
News Flash: An average of 498 Americans become disabled every 10 minutes.3
Another major misconception is the primary cause of disabilities:
Believe it or not, illnesses are the cause of 90% of disability claims, not accidents.1
Only 9% of long-term disability claims are accident-related.1
Most individuals are covered in the event of a job-related disability. And they believe that this provides sufficient coverage… right? Wrong! 95% of disabilities are not work related.1
Another common misunderstanding is that Social Security Disability (SSDI) benefits will be sufficient to replace income in the event of your disability.
The truth is the average monthly SSDI benefit received in 2009 was $1,064.2
The truth is only 36% first-time applicants qualify to receive benefits.2
The truth is SSDI is only available to those who will be disabled for at least a year or permanently.
So why are there so many misconceptions about disability and disability income? I believe it is simply a lack of awareness and education. Think about it for a moment:
Was this something that was taught is school? Have you educated your own children on the threat of disability? Or is this just something we assume everyone should know—including our children and grandchildren?
Do you have plan is in place to protect or replace your income in the event of a disability?
Do your children have a plan is place to protect or replace their income in the event of disability?
Do your grandchildren have a plan is place to protect or replace their income in the event of disability?
Astonishingly, 69% of U.S. employees lack disability insurance!1 What is their plan to protect or replace their income? It can’t be savings. 70% of Americans live paycheck to paycheck.4 So what is their fallback plan? I fear it hinges on one of those “misconceptions” about disability income.
I encourage you to not only look at your disability income plan, but to educate your children and grandchildren about the potential threat of disability and how it could affect their income and their future.
For more information about disability insurance: Kennedy Financial Services, www.kennedy-financial.com, 254.629.3863/800.588.6381
- Council for Disability Awareness’ 2010 Long-Term Disability Claims Review
- Social Security Administration
- National Safety Council
- American Payroll Association, “Getting Paid in America” 2008
Securities & Advisory Services offered through VSR Financial Services, Inc., a Registered Investment Adviser and Member FINRA/SIPC. Kennedy Financial Services is independent of VSR Financial Services, Inc.