Disability Insurance Statistics

What are your odds of a disabling injury or illness?

You probably insure your home, your car and other personal assets. But what about the income that provides those assets? You might be surprised to learn what poses the greatest threat to most people during the course of one year. Consider these statistics:

Odd for risks Covered by Insurance
1 out of 5 That your auto will be damaged in an accident
1 out of 21 That you will have a disabling accident
1 out of 96 That you will have a fire
1 out of 114 That you will die

Source: Field Guide 2001, National Safety Council, World Almanac

Did you know: During the course of your career, you are three and a half times more likely to be injured and need disability coverage then you are to die and need life insurance.

Source: Health Insurance Association of America, 2000

Did you know: Approximately 30% of all people ages 35 to 65 will suffer a disability for at least 90 days, and about one in seven can expect to become disabled for five years or more.

Source: Source: Health Insurance Association of America, The New York Times, February 2000

Are you planning a Long Vacation?

You probably plan ahead, even for a short vacation. But, you may not have planned ahead for an unexpected “vacation”… a long-term disability. The conditions listed below could leave you unable to work for a month, six months, or even longer.

Conditions Causing Limitation Number (in thousands) Percent of All Conditions
Heart Disease 7,932 13.0
Deformities, orthopedic impairments & disorders of the spine or back 7,672 12.6
Osteoarthritis and allied disorder 5,048 8.3
Orthopedic impairment of lower extremity 2,817 4.6
Asthma 2,592 4.2
Diabetes 2,569 4.2
Mental Disorders 2,035 3.0
Cancer 1,342 2.2

Source: Health Conditions and Impairments Causing Disability, US Department of Education. National Institute on Disability and Rehabilitation (NIDRR). Abstract No.16, Table 2, September, 1996

Most likely, you realize the need for life insurance – you know you’re going to die, and planning for the well being of your family upon the event of your death is not often questioned. Planning for a disability shouldn’t be any different. Especially since your chance of becoming disabled before age 65 is greater than your chance of dying.

Age Number of Disabilities
per 1000 Lives*
Number of Deaths
per 1000 Lives*
Disability
vs. Death Ratio
27 5.17 1.46 3.54 to 1
32 5.36 1.64 3.27 to 1
37 7.45 2.14 3.48 to 1
42 10.22 3.22 3.17 to 1
47 13.93 4.68 2.98 to 1
52 17.52 6.82 2.57 to 1
57 23.02 10.23 2.25 to 1

* 1985 Commissioner’s Individual Disability Table B, 1980 CSO

Disability Plays No Favorites

With Disability Income Insurance you can feel secure in knowing that you are protecting your most valuable asset – your ability to work and earn an income. Avoid the financial strain even a short-term disability can cause when you’re sick or hurt to work.

The causes of disability may surprise you! Here is a breakdown (by percentage of claims) of some typical reasons an individual may become disabled

48% of all home foreclosures are the result of disability, while only 3% of all foreclosures result from death.

Source: Principal Life Disability insurance claims incurred as of March 2009. The above is for illustration purposes only and its not intended as an inclusive representation of all claims.