Workers Need To Be Prepared for A Disability

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From the CDA 2009 Worker Disability Planning and Preparedness Study:

    • Only one in three workers surveyed associate financial planning with protecting assets and income (38%), tax planning (33%), or saving for a home purchase (32%).
    • Nearly nine in ten workers surveyed believe that people should plan in their 20s or 30s in case an income limiting disability should occur (86%). Only half of all workers have actually planned for this possibility (50%), and only half have even discussed disability planning (46%).
    • When surveyed what is most valuable in helping them achieve long-term financial security, far more workers rank their ability to earn a living as number one (53%) than assets such as retirement savings (17%), other savings and investments (12%), their home (12%), medical insurance (5%), or personal possessions (1%).
    • The large majority of workers are concerned about how they would pay their living expenses if they were disabled (82%), yet most are not prepared if such a disability were to extend for any significant length of time. Seven in ten could cover their expenses for six months or less.
  • 66% of executives surveyed believe that providing financial advice at the workplace is more important than it was a year ago
    – Charles Schwab & Co. June 2009
  • 76% of employed baby boomers and 68% of employed Generation Y workers say that the employer is among the most reliable sources of information about benefits.
    – Harris Interactive Survey 2008
  • Only 5% of baby boomers realize they have a 34% chance of becoming disabled during their working years.
    – Harris Interactive/AHIP, Baby Boomers’ Awareness of Disability Risks, February 2008
  • 45% of employees feel not at all knowledgeable about individually owned disability insurance.
    – Principal Well-Being Index, 1QTR 2009
  • 14% of employees personally own a disability income insurance policy on themselves, a significant decrease from 1st quarter 2008 when 18% reported owning such a policy. Only 7% of employees’ spouses own a disability income insurance policy.
    – Principal Well-Being Index, 1QTR 2009

For more information about disability insurance for individuals or employees, contact the Set for Life Insurance office today to request a free quote comparison.