Many U.S. workers are unfamiliar with their options when a severe health condition takes them off the jobSteve Perrigo, Allsup Vice President, answers common questions in observance of Disability Insurance Awareness Month in May.
May 1, 2019 | Globe Newswire
Disability Insurance Awareness Month in May highlights the importance of disability insurance as a financial and economic tool for American workers. According to U.S. Bureau of Labor Statistics data, 42% of workers have access to short-term disability insurance and 34% have access to private long-term disability coverage. More than 155 million workers are insured for Social Security Disability Insurance (SSDI) benefits. Yet many workers still don’t realize the implications for their financial and work futures, according to Allsup, the nation’s premier provider of Social Security Disability Insurance representation services.
According to one study, only 38% of Americans are knowledgeable about disability insurance. Considering one in five Americans report having some type of disability, closing the knowledge gap could lead to improved choices by workers and advantages for the greater economy.
“The worst thing that can happen for some individuals is to totally miss out on the valuable advantages of disability insurance through a misunderstanding of its purpose and role for workers, especially following a disability, when their lives are already upended,” said Steve Perrigo, Allsup vice president. “Many people don’t realize there is a dual purpose to disability insurance: income and then support with returning to work.”
Why do I need disability insurance?
The data show that 1 in 4 workers, by the time they reach full retirement age, will experience a disability that prevents them from working. Disability insurance—both public and private—is expressly designed to help workers avoid financial devastation with the lost income when this happens.