What are the Chances?
The biggest question most accountants have for us when they call is "Why do I need disability insurance? What are the chances I'll use it?". You are familiar with numbers and in order for something to make sense, it has to reconcile. Here are the facts on disabilities2:
- Most than 25% of today's 20-year-olds will become disabled for at least a year before age 65.
- Most disabilities are NOT accidents, they are illnesses. Cancer, heart disease, strokes, and other illnesses account for the majority of long term disabilities.
- Musculoskeletal disorders are the #1 cause of disabilities. These include things like arthritis, back pain, and joint disorders.
- Cancer is #2 at 15% of claims.
- Mental health is a major claim situation, accounting for almost 10% of all claims.
- Most disabilities are not work-related, so it doesn't matter that you have a desk job.
- A 45-year-old male has a 32% greater chance of being disabled for more than 90 days than he does of dying before age 653. For women, this number is 111%.
The reality is that most disabilities are illnesses, and illness doesn't care what you do for a living. Even though you have a safe job where you are unlikely to experience a disability at work, you still need to protect your income from things like cancer, heart disease, stroke, and other illnesses.