Millions of working Americans are facing a growing crisis: a lack of adequate disability insurance coverage. Today, the absence of emergency savings, rising medical costs, and an overall trend of fewer employers offering benefits to workers has created a critical blind spot for many American workers and their families. Without some kind of income protection, more Americans are experiencing severe financial difficulty if they need to miss work due to illness, injury, or pregnancy.

A lack of adequate disability coverage.

• At least 51 million working adults in the United States are without disability insurance other than the basic coverage available through Social Security.
• Only 40 percent of US households have enough in liquid savings to cover at least three months of their recurring expenses, and only 28 percent can cover at least six months.
• Three out of ten American adults indicate they can’t pay an unexpected $400 bill without having to carry a balance on their credit card or borrow money from friends, family, or the bank.

If the pandemic has taught us anything, it is that you need to plan for the unexpected. One thing people don’t expect is that they might become disabled and need disability insurance to protect their income.

That’s why during May, Disability Insurance Awareness Month, LIMRA is joining the industry to remind Americans about the importance of having disability insurance coverage to protect their income if they become disabled and are unable to work.

Below are some facts that highlight the importance of disability insurance coverage:

Despite the need, the percentage of Americans with disability insurance (DI) coverage declined from a high of 31% in 2012 to a low of 14% in 2021.

Data on consumer financial concerns suggest concern over a potential disability has grown among Millennials and Gen Xers. This is a positive trend because, according to the Social Security Administration, more than 1 in 4 of today’s 20-year-olds can expect to be out of work for at least a year because of a disabling condition before they reach the normal retirement age.

Disability insurance ranked high, with 46% saying LTD benefits were more important and 43% saying the same about STD benefits.

According to the Bureau of Labor Statistics, workers’ compensation only covers time away from work if the disabling illness or injury was directly work-related. In 2019, less than 1% of American workers missed work because of an occupational illness or injury.

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