Financial Impact on Disabled Individuals Can Be Staggering, Says New Study

In the absence of insurance, a majority of Americans would have to make difficult financial decisions, or even drastic lifestyle changes, in order to cover the costs associated with disability, whether the disability is short- or long-term.

The financial impact of a disability -- equal to lost income plus expenses -- to be as high as nearly $1 million for a 40-year-old, single male earning $50,000 per year who suffers a long-term disability lasting until age 65 -- nearly 20 times his pre-disability earnings.

The study also shows that the costs associated with short-term disabilities can be quite significant -- equaling one to nearly two times income in some cases for a disability lasting just two years.

The study found those hit hardest by the costs resulting from a disability are single individuals, who do not have a second income to rely on; lower-income individuals, because added expenses are greater relative to the lost income; and those who suffer longer-term disabilities due to the high associated costs.

Couple this information with the fact that as a result of the recession, many Americans have less savings and investments to fall back on should they become disabled and can't work, and you have the potential for a financial crisis for many Americans.

If you have questions about your existing disability insurance or a claims denial, please call Stacey Burke at (800) 282-2122.

Labels: benefit disability disability benefit disability insurance disabled ERISA Injury insurance Long Term Disability LTD Short Term Disability STD