In the 2016 Insurance Barometer Study, 56 percent of consumers said they were concerned about supporting themselves if they became disabled and could not work. Specifically, 7 in 10 Gen X and Millennials consumers said disability was a financial worry, second only to having enough money in retirement. (Chart)
Despite those high levels of concern, only 33 percent of employed consumers have disability income (DI) insurance. May is Disability Insurance Awareness Month, an annual effort to inform people about the importance of protecting their paycheck in the event they suffer a disabling injury or illness and are not able to work.
According to the U.S. Social Security Administration, 1 in 4 of today’s 20 year-olds will become disabled before reaching age 67. How will these workers pay their bills? Research shows that half of working Americans couldn’t make it a month before financial difficulties would set in, and almost one in four would have problems immediately1. Even without a disability, the 2016 Barometer study reveals that two-thirds of Millennials and more than half of Gen X consumers said paying monthly bills was a financial concern.
For advisors, the challenge is connecting the need with an actual purchase. In the Barometer study, 72 percent of working consumers agreed that most people need disability insurance and more than half said they personally needed it. Yet, only 33 percent have DI insurance. Reminding consumers that protecting their paycheck is an important priority to ensure their financial security, as well as that of their families.
For more information, LIMRA has developed the 2016 Disability Awareness Month Fact Sheet, available for downloading.
1 Life Happens study, 2015.