May is Disability Awareness Month!
A recent study by the American Council for Life Insurers indicates that over 50 million households in the United States are without individual disability insurance. This is why every financial/estate plan must address the impact of a long term disability. Especially when you consider that you are four times more likely to suffer a disability than die prior to age 67. Without a plan in place, many families and individuals face severe financial difficulty.
The four most common reasons for a long term disability:
- 1. Musculoskeletal disorders (29%)
- 2. Cancer (15%)
- 3. Pregnancy (9.4%)
- 4. Mental health issues (9.1%)
The consequences of a long term disability can be alarming. A 2014 study of bankruptcy filings showed the primary causes as medical bills, lost job and illness, comprising over 60% of the filings.
Workers’ compensation and Social Security do not provide a significant benefit. In 2016, only 1% of American workers missed work because of a work-related injury or illness. Also, from 2006 through 2015, only 34% of claims submitted to Social Security claims approved. And the average social security benefit was $1,197/month.
Lastly, many are covered by a group disability policy through work. This is a valuable benefit but the benefit is taxable and most with higher incomes are not adequately covered. If you or someone you know is concerned about their disability program, please contact us for a review.
May is Disability Awareness Month – Become aware of what you have.
Greenberg, Wexler & Eig, LLC