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DISABILITY STATISTICS 2019


​No matter the type of job you have, becoming disabled is definitely a possibility, and unfortunately ​a high majority of us aren't prepared mentally or financially for ​a situation of ​being disabled for a short or long ​period of time. 

Here is a preview of what's ahead:

  • ​51 million working adults in the U.S. are without disability insurance. ​
  • ​​46% of all foreclosures on conventional mortgages are caused by a disability.
  • ​​A 25 year old has a 58% chance of becoming disabled for 3 months or longer before age 65.
  • ​Close to 90% of disabling accidents and illnesses are not work related.
  • ​Most income earners ​spend 65% to 75% percent of their normal cash flow.


2019 Disability Statistics

Key Facts In 2019


The speed of people becoming disabled along with the absence of emergency savings, combined with the extreme rise in the cost of medical care has created a financial blind spot for many families.   It is essential that we understand how to protect ourselves from this disaster waiting to happen.

  • More than ​25% of today’s 20-year-olds will be out of work for at least a year because of a disability, before they r​etire.
  • At least 51 million working adults in the U​​nited States are without disability insurance in 2019 ​
  • Only 40​% of US households have atleast $6,275 in ​savings. That is only 3 months of ​income to live on for a family of 4. ​
  • ​4 out of ​10 American adults indicate they can’t pay an unexpected $400 bill without having to ​borrow money.
  • Each year around 5% of working Americans will experience a non-occupational short-term disability. 

The Most Common Reasons For Short-Term Disability Claims Are:


  • ​Pregnancies (22%)
  • Musculoskeletal disorders affecting the back and spine, knees, hips, shoulders,and other parts of the body (19.9%)​
  • ​Injuries such as fractures, sprains, and strains of muscles and ligaments (11.6%)
  • ​Digestive disorders, such as hernias and gastritis (7.8%)
  • ​Mental health issues including depression and anxiety (7.1%)

The Most Common Reasons For ​Long-Term Disability Claims Are:


  • ​Musculoskeletal disorders (29.7%)
  • ​Cancer (14.8%)​
  • Injuries such as fractures, sprains, and strains of muscles and ligaments (12.3%)​
  • ​Mental health issues (8.6%)
  • ​Circulatory (heart attack, stroke) (8.1%)


General Disability​ ​Statistics

Disability By The Numbers


  • ​Close to 90% of disabling accidents and illnesses are not work related
  • ​Only about 35% of those who apply for Social Security benefits actually qualify for them.
  • ​A 35-year-old has a 50 percent chance of becoming disabled for a 90-day period or longer before age 65 
  • ​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.
  • ​The employment rate for those with a disability or severe functional limitation is only 27.6%.
  • 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.
  • ​1 in ​3 working Americans will become disabled for 90 days or more before age 65
  • ​3 in 10 workers entering the work force today will become disabled before retiring.

We Aren't Financially Ready


  • ​According to the Federal Reserve, 44% of U.S. families spend more than they earn.
  • ​46% of all foreclosures on conventional mortgages are caused by a disability.
  • ​Most income earners ​spend 65% to 75% percent of their normal cash flow. ​
  • ​If you have saved 10% of your income each year, ​1 year of being totally disabled could wipe out 10 years of savings.
  • ​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.
  • ​Medical problems contributed to 62% of all personal bankruptcies filed in the U.S.

A Lot Of Us Are Disabled


  • ​Over 1 billion people, which makes up 15% of the world’s population, have some form of disability.
  • ​Over 6.8 million workers are receiving Social Security Disability benefits, almost half are under age 50
  • ​More than 375,000 Americans become totally disabled every year.
  • ​Over 37 million Americans are classified as disabled; about 12% of the total population.
  • ​Approximately 8 million adults have some disability that limits or prevents them from working.
  • ​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.


Disability​ ​Statistics By Age


​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.


Disability​ Insurance Statistics


We Don't Have Enough Coverage


  • About 110 million Americans don't have long-term disability coverage.
  • ​The typical long-term disability policy covers approximately 60% of a base salary up to $25,000 a month.
  • You should secure disability income insurance of at least 65% to 75 ​% of your normal earned income.
  • Social Security Disability Insurance is only available ​if you have worked at least 10 years before becoming disabled.
  • The Social Security Disability Insurance program pays an average of only $722 per month.
  • ​The average group long-term disability claim lasts 34.6 months.
  • ​The average individual disability claim lasts 31.6 months.
  • Almost all disabilities (90%) are caused by illness, not accidents.
  • ​Benefits from an employer's group plan are taxable. Individual policies allow you to pay benefits free of income tax.
  • ​70% of the private sector workforce has no long-term disability insurance.

​Taking Action


If you have read even 1 of these 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.

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

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. 

​Unexpected disabilities are destroying the financial stability of our families and affecting our ability to save for retirement, the only real way to stop this is to make sure you are covered.

METHODOLOGY


DATA COLLECTION INFORMATION