Understanding the Risk of Disability

Who needs disability insurance?

Just about anyone who has a job. The possibility of a disabling illness or injury may seem remote, but statistics paint a different picture. Of today’s 20 year-olds, one in four will become disabled at some point in their career, according to the Social Security Administration. While it’s true that people in professions like farming, law enforcement and construction face greater risks,the odds of suffering a long-term disability are high for all workers because illness—not accidents— account for most disabilities that keep people out of work.

Your paycheck could stop arriving just as an illness or injury brings significant expenses for medical bills, physical rehabilitation or the cost of modifying your home to accommodate medical equipment. Missed mortgage payments could put ownership of your home in jeopardy. Falling behind on credit card and other bills could mean burdensome late fees and escalating finance charges. In fact, disabilities have historically caused nearly half of all mortgage foreclosures and a significant number of personal bankruptcies.

The financial consequences can be even more far reaching. A lengthy disability could literally cost you millions. A 45-year-old worker who makes $50,000 a year and suffers a permanent disability could lose $1 million in future earnings.

For a great 2 minute overview on disability, please take the time to watch “Disability Insurance 101


“What Do You Know About Disability Insurance?” Life Happens, 2018