Key Facts in 2018

Millions of working Americans are facing a
growing crisis: a lack of adequate disability
insurance coverage. Today, the absence of
emergency savings, rising medical costs, and an
overall trend of fewer employers offering benefits
to workers has created a critical blind spot for
many American workers and their families.
Without some kind of income protection, more
Americans are experiencing severe financial
difficulty if they need to miss work due to illness,
injury, or pregnancy.

Here are the critical numbers.
• More than one in four of today’s 20-year-olds
can expect to be out of work for at least a year
because of a disabling condition before they
reach the normal retirement age.

• At least 51 million working adults in the
United States are without disability insurance
other than the basic coverage available
through Social Security.

• Only 48 percent of American adults indicate
they have enough savings to cover three
months of living expenses in the event they’re
not earning any income.

• Almost half of American adults indicate they
can’t pay an unexpected $400 bill without having
to take out a loan or sell something to do so.

•Chances of missing work due to illness, injury, or pregnancy are greater than most realize.

• 5.6 percent of working Americans will experience a short-term disability (six months or less) due to illness, injury, or pregnancy on average every year.  Almost all of these are non-occupational in origin.

• The most common reasons for short-term disability claims are:

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

• The most common reasons for long-term disability claims are:
1. Musculoskeletal disorders (29%)
2. Cancer (15%)
3. Pregnancy (9.4%)
4. Mental health issues (9.1%)
5. Injuries such as fractures, sprains, and strains of muscles and ligaments (9%)

The consequences are alarming.
• A 2014 study of consumer bankruptcy filings identified the following as primary reasons: medical bills (26%), lost job (20%), illness or injury on part of self or family member (15%).

• A 2013 study of bankruptcy filings in Washington state found that cancer patients were 2.65 times more likely to go bankrupt than people without cancer, with younger (under age 50) cancer patients having the highest rates of bankruptcy.  Data and information obtained from LifeHappens.com whitepaper.