Employees Need More Information Regarding Disability

American Health Insurance Plans conducted a survey in mid 2004 of full-time employees to gauge how informed employees are about the
issues surrounding disability insurance. 1

58 percent of working adults say they are covered by disability insurance.

Statistics show: Only 35 percent of employees are covered by disability insurance.

29 percent of employees believe they are likely to become disabled due to an illness. 58 percent
indicate they think an accident will result in a disability.

Statistics show: Over three-fourths of disabilities are a result of illness.

Seven out of 10 employees underestimate the risk of becoming disabled.

Statistics show: One in three employees will have a disability lasting at least three months during
some point of his or her career.

59 percent of employees overestimate the proportion of disabilities that are covered by
workers’ compensation insurance.

Statistics show: Only 10 percent of disabilities are covered by workers’ compensation insurance.

One-third of employees indicate they could only live for three months or less on their savings or other income if the primary wage earner lost his
or her income due to a disability. According to the Society of Actuaries, over half of disabled
employees remain unable to work between 90 days and one year. 2

For most employees, the ability to earn an income is their most significant resource for financial security. Although a disabling illness
or injury can have severe consequences, many employees do not have adequate protection.
Disability insurance is designed to meet the financial risk of disability.



1. Disability Insurance: A Missing Piece in the
Financial Security Puzzle, AHIP and SOA,
http://www.ahip.org/redirect/AHIPDIChartBook
.pdf


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