95+ Disability Insurance Statistics & Facts For 2021

Becoming disabled isn’t what most of us are thinking about; however, it’s definitely a possibility, and unfortunately a high majority of us aren't prepared mentally or financially for a short or long term disability. We will cover disability insurance statistics as well as general disability statistics for 2021.

Top Disability Insurance Statistics: 

  • 51 million working adults in the U.S. are without disability insurance. 
  • 25% of today’s 20-year-olds will be out of work for at least a year because of a disability, before they retire.
  • 5.6% of Americans in the work-force will experience a short-term disability (usually six months or less) every year.
  • Around 40% of applications for disability insurance are declined, rated, or are only accepted with an exclusion.
  • Almost 90% of long-term disability claims are caused by illnesses, not accidents, and aren’t work related.
  • At 25%, Pregnancies are the most common reason for short-term disability claims.
  • The most common reason for a long-term disability claim to be filed is Musculoskeletal disorders at 29%.
  • Tinnitus is the most common disability among the veteran population.
  • 7.3% was the unemployment rate for someone with a disability in 2019.
  • The employment rate for someone in the U.S. with a disability in 2019 was 19.3%.

Disability Insurance Facts For Working Americans

Why Are So Many Workers Without Disability Insurance?


Around 51 million working adults in the U.S. don’t have disability insurance because they usually don’t understand precisely how it works. Over 375,000 Americans become totally disabled each year, and over 8 million adults have a disability that prevents them from working. We have to do a better job of securing disability insurance.

Key Statistics:


  • 51 million working adults in the U.S. are without disability insurance
  • Some 110 Million Americans don't have long-term disability insurance coverage.
  • Over 375,000 Americans become totally disabled each year.
  • About 8 million adults that have a disability that prevents them from working
  • 48% of U.S. Adults say they only have enough savings to cover three months of living expenses if they stop working.
  • Around 50% of American adults say they can’t pay an unexpected $400.00 bill without needing to take out a loan.
  • 67% of American workers have no long-term disability insurance.
  • ⅓ of working Americans don’t have adequate disability coverage.
  • Health is the most common reason someone gets declined for disability insurance.
  • 33% of workers in the U.S. have access to long-term disability insurance through their employer.
  • Around 41% of employers offer long-term disability insurance for their employees.
  • Americans are five times more likely to become disabled than die but they are more financially prepared for death
  • 46% of all foreclosures on conventional mortgages are caused by a disability.
  • On average, a long term disability policy will cover about 60 percent of your base salary up to a certain maximum.
  • One year of being totally disabled could wipe out up to 10 years of savings.
  • You have to work for 10 years before becoming disabled to qualify for Social Security Disability Insurance

Sources:


Disability Can Happen To Anyone At Anytime

What Are Your Chances of Becoming Disabled?


1 in 4 of today’s 20 year olds can expect to be out of work for at least a year because of a disability. If you are 35, you have a 50 percent chance of being disabled for 90 days or longer before you turn 65.  Around 30% of working Americans between ages 35 - 65 will suffer a disability that will last for 90 days during their career. Honestly, the chances are high.

Key Statistics:


  • About 1 in 4 of today’s 20 year olds can expect to be out of work for at least a year because of a disability.
  • About 5.6% of Americans in the work-force will experience a short-term disability every year. 
  • Around 40% of applications for disability insurance are declined, rated, or are only accepted with an exclusion.
  • Almost 90% of long-term disability claims are caused by illnesses, not accidents, and aren't work related.
  • 25% of people who are 20 years old now will be disabled before they reach age 67.
  • Around 48 Million Americans report some type of hearing loss.
  • Over 7 Million people in the U.S. report having some sort of visual disability and
  • Over 1 million Americans are legally blind. 
  • 16% of people in the United States have some sort of difficulties with their physical functioning.
  • About 8 million Americans have an intellectual disability.
  • 37 million Americans are considered disabled which comes to about 12% of the population.
  • 50% of disabled Americans are in their working year ages of 18 through 64.
  • A 35-year-old has a 50 percent chance of becoming disabled for a 90-day period or longer before age 65

Chances Of Becoming Disabled By Age


  • A 25 year old has a 58% chance of becoming disabled for 3 months or longer before age 65
  • A 30 year old has a 54% chance of becoming disabled for 3 months or longer before age 65
  • A 35 year old has a 50% chance of becoming disabled for 3 months or longer before age 65
  • A 40 year old has a 45% chance of becoming disabled for 3 months or longer before age 65
  • A 45 year old has a 40% chance of becoming disabled for 3 months or longer before age 65
  • A 50 year old has a 33% chance of becoming disabled for 3 months or longer before age 65
  • A 55 year old has a 23% chance of becoming disabled for 3 months or longer before age 65

Average Length Of Disability By Age


  • The average length of a long term disability for a 25 year old is 2.1 years.
  • The average length of a long term disability for a 30 year old is 2.5 years.
  • The average length of a long term disability for a 35 year old is 2.8 years.
  • The average length of a long term disability for a 40 year old is 3.1 years.
  • The average length of a long term disability for a 45 year old is 3.2 years.
  • The average length of a long term disability for a 50 year old is 3.1 years.
  • The average length of a long term disability for a 55 year old is 2.6 years.

Long Term Disability Vs Death By Age (Odds)


  • A 27 year old is 2.7 times more likely to have a long term disability than to die at their current age.
  • A 37 year old is 3.3 times more likely to have a long term disability than to die at the age of 37.
  • A 42 year old is 3.5 times more likely to have a long term disability than to die at their current age.
  • A 47 year old is 2.8 times more likely to have a long term disability than to die at that age.
  • A 52 year old is 2.2 times more likely to have a long term disability than to die at the age of 52.

Sources:


Disability Claims Statistics

What Are The Most Common Disability Claims?


The most common reason for a short-term disability claim is pregnancies at 25%. For long-term disability claims, Musculoskeletal disorders at 29%. In the Military, the most common claim is for Tinnitus.

The Most Common Reasons For Short-term Disability Claims Are


  • Pregnancies (25%)
  • Musculoskeletal disorders affecting the back and spine, knees, hips, shoulders, and other parts of the body (20%)
  • Digestive disorders, such as hernias and gastritis (7.8%)
  • Mental health issues including depression and anxiety (7.7%)
  • Injuries such as fractures, sprains, and strains of muscles and ligaments (7.5%)

The Most Common Reasons For Long-term Disability Claims Are


  • Musculoskeletal disorders (29%)
  • Cancer (15%)
  • Pregnancy (9.4%)
  • Mental health issues including depression and anxiety (9.1%)
  • Injuries such as fractures, sprains, and strains of muscles and ligaments (9%)

What Are The Most Common Military Disability Claims?


The most commonly claimed disability for all Veterans is Tinnitus which is rated automatically at 10%. 93.6% of Veterans were rated at 10% for this claim since there is no lower rating for Tinnitus; it’s either 10% or nothing according to 2019 disability claims data.

10 Most Common Disabilities for Veterans? 


  • Tinnitus.
  • Bilateral Hearing Loss.
  • Post-traumatic Stress Disorder (PTSD)
  • Scars.
  • Limitation of Flexion of the Knee.
  • Lumbar and Cervical Strains.
  • Paralysis of the Sciatic Nerve.
  • Limitation of Motion of the Ankle.
  • Migraines
  • Degenerative Arthritis of the Spine

Sources:


Disability Unemployment Rate In U.S.

What Is The Unemployment Rate For People With Disabilities?


7.3% was the unemployment rate for people with disabilities in 2019 according to the Bureau of labor Statistics. This was a small decrease from 8% that was reporting in 2018. However, people with a disability are still 2 times likely to be unemployed compared to people without a disability. 

Key Statistics:


  • 7.3% was the unemployment rate for people with disabilities in 2019 according to the Bureau of labor Statistics.
  • 50% of all people with a disability were 65 years of age or older.
  • The unemployment rate for men with a disability in 2019 was 7.4%, almost the same as women with a disability at 7.3%.
  • The youth unemployment rate for disabled people between the ages of 16 - 19 was 22.1% in November of 2020.
  • The unemployment rate for disabled youth between the ages of 20 and 24 was 19.5% in November of 2020. 
  • About 32% of workers that had a disability worked part-time, compared to 17% for people without a disability In 2019.
  • The employment population ratio for people with disabilities was much lower than for people without a disability.
  • No matter the level of education, someone with a disability still faces a much higher unemployment rate.
  • African Americans had a higher unemployment rate (11.8%) than Hispaniscs (8.6%), Asians (6.7%), and European Americans (6.6%) among people with a disability.

What Percent Of Individuals With Disabilities Are Employed?


19.3% of people with disabilities were employed in the U.S. in 2019 which isn’t much change from 2018 with 19.1 percent. 

Key Statistics:


  • The employment rate for someone in the U.S. with a disability in 2019 was 19.3%.
  • There was a 30.9% increase in the employment-population ratio for someone with a disability aged 16 to 64 in 2019.
  • A disabled person is less likely to have completed a bachelor’s degree or higher compared to someone not disabled.
  • Working-Americans with a disability were more likely to be employed part time than those with no disability.
  • In 2019, 20.7% of workers with a disability focused on service occupations versus those with no disability at 17.0%.
  • Someone with a disability had a higher probability of being self employed (10%) than those without a disability (5.9%).
  • In 2019 the proportion of disabled and non disabled employees in the U.S. government was equal at 13.3%.

Disability Employment Statistics (By State)


Ranking

State

Disability Employment Rate

1

ND

56.3% 

2

SD

51.3%

3

UT

49.5%

4

NE

49.3%

5

MN

47.8%

6

VT

47.2%

7

KS

46.4%

8

MT

45.9%

9

IA

45.7%

10

WY

45.6%

11

CO

45.5%

12

AK

44.9%

13

ID

43.7%

14

HI

43%

15

NH

42.8%

16

MD

42.3%

17

WI

41.9%

18

VA

40.8%

19

RI

40.6%

20

WA

40.5%

21

CT

40.2%

22

NV

40.2%

23

TX

39.9%

24

IN

38.6%

25

IL

38.1%

26

OR

37.8%

27

MA

37.7%

28

NJ

37.7%

29

OK

37.6%

30

PA

37.4%

31

MO

37.1%

32

DE

37%

33

OH

36.9%

34

AZ

36.5%

35

CA

36.4%

36

ME

35.1%

37

GA

34.5%

38

NY

34.5%

39

FL

34.1%

40

LA

33.9%

41

MI

33.8%

42

NC

33.8%

43

NM

33.7%

44

TN

33.3%

45

SC

32.6%

46

AR

30.8%

47

KY

30.2%

48

MS

27.6%

49

AL

26.8%

50

WV

26.1%

Sources:


General 2019 Disability Statistics

Key Statistics:


  • The total U.S. population with a disability is 40.7 million or 12.7%.
  • Over 1 billion people, which makes up 15% of the world’s population, have some form of disability.
  • Only about 35% of those who apply for Social Security benefits actually qualify for them.
  • About 30 percent of Americans ages 35-65 will suffer a disability lasting at least 90 days during their working careers.
  • 1 in 8 workers will become disabled for 5 years or more during their lifetime.
  • About 1 in 7 people ages 35-65 can expect to become disabled for five years or longer.
  • Back disorders are most commonly sited (21%) as chronic conditions that cause working limitations.
  • 9 out of 10 individuals underestimate their own chances of becoming disabled.
  • 3 in 10 workers entering the work force today will become disabled before retiring.
  • According to the Federal Reserve, 44% of U.S. families spend more than they earn.
  • Most income earners spend 65% to 75% of their normal cash flow.
  • Over 50% of the workforce has no private pension coverage and a third have no retirement savings.
  • Only 40% of adult Americans have separate emergency savings funds.
  • Every 19 seconds someone is injured in an auto accident.
  • Every 17 seconds someone is injured at work.
  • Every 4 seconds someone is injured in some kind of accident.

Sources:


Taking Action

Concluding Thoughts


If you have read even 1 of these disability statistics then you know that this doesn't look good for us, it is super easy to think that nothing is going to happen to us; however, the numbers just don't lie.

The stats show that we are all underestimating our ability to become disabled and because of that, we aren't prepared for any of the financial realities when we actually become disabled. 

Obtaining some type of long-term disability insurance is essential to our overall financial survival .

While getting insurance is the best way to avoid financial hardship, there is help and aid available to those with long-term disabilities like these freebies for cancer patients.  

Sources: 



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