The gap between what employees believe - and how they act - about the potential for an income - threatening disability
Nearly 70% of respondents think a disability would keep a person out of work for more than one year.
Workers surveyed believe that if a person becomes disabled, he/she will be out of work for a lengthy period of time. In fact, more than two - thirds of respondents thought that a disability would put a person out of work for a year or more. And almost one - third said that person would never return to work.
70% of employees in the private sector are not covered by any type of private long-term disability insurance.1
In fact, even when offered as a voluntary benefit by their employers, almost 40% of workers don't choose long-term disability insurance.2 And barely 30% claim to understand it very well.2
Even the likelihood of receiving government benefits from the Social Security Disability Insurance program (SSDI), which could cover a person after a severe disability that is expected to last a year or more or result in death, is dwindling. Although most private sector employees are covered by SSDI, benefits are limited.
- The average monthly SSDI benefit amount in 2009 was $1,064, with 56% of recipients receiving less than $1,000 per month.3
- It is very difficult to qualify for SSDI benefits. 65% of initial benefit applications were denied in 2009,3 and the appeals process can last up to four years
- SSDI approval rates have steadily declined in recent years.4
2 CDA 2008 Worker Disability Planning and Preparedness
3 Social Security Administration, Disabled Worker
Beneficiary Statistics, ssa.gov.
4 The 2010 CDA Long-Term Disability Claims Survey.