Most individuals are aware of the advantages of disability insurance in protecting one’s income if they become ill or injured and cannot work. However, in addition to income protection, disability insurance can help protect retirement goals by avoiding early withdrawals. Early withdrawal from retirement plans might be more expensive in the long term due to the loss of retirement savings and tax penalties.
According to the 2022 Insurance Barometer Study, 24% of consumers believe they would use their retirement assets if they became disabled. Only about one-fifth of those polled stated they would use supplemental insurance, disability insurance, or workplace compensation. According to the LIMRA study, most consumers don’t have disability insurance and would have to rely on other sources of financial support, jeopardizing their long-term financial goals.
Interestingly, according to the Barometer Study, retirement planning was the top reason consumers gave for getting disability insurance in 2022, increasing by 6% from January 2020 (27% versus 21%). That indicates that consumers are more aware of the risks a disability can cause to a household’s income and retirement funds.
Other reasons for purchasing disability insurance include knowing someone who was negatively affected because they did not have coverage (27%), joining the workforce (25%), getting married (15%), having a kid (14%), and starting a business (13%).
Currently, only 14% of customers have private disability insurance coverage, a 17-point decrease from an all-time high of 31% in 2012. Almost half (49%) of respondents say a disability would cause financial hardship in their home in six months or less.
Disability Insurance Awareness Month (DIAM) is an industry-wide program coordinated by Life Happens to emphasize the necessity of having enough disability insurance coverage to secure one’s income in the case of illness or injury. Every year, LIMRA is happy to sponsor the DIAM campaign.
Contact Information:
Email: [email protected]
Phone: 6023128944
Bio:
Mike was born in Chicago, Illinois on August 13, 1946. He was brought up in the
suburb of Skokie on Chicago’s northwest side and graduated from Niles Township (
East ) high school In 1964. Two years later he joined the US Air Force in November of
1966. After 2 years of Intense training he volunteered for Viet Nam and was sent to
Bien Hoa Airbase, which was 25 miles from Saigon, the nation’s capital. He
volunteered for a number of especially dangerous missions on his days off, such as
flying as a door gunner on a US Army helicopter and as a technical assistant on a
psychological operation on an Air Force O-1E observation aircraft. Capping off his
impressive accomplishments was winning the coveted Base Airman of the Month for
March 1969, a feat which was featured in the Pacific Stars And Stripes newspaper
read by every service man stationed in the Pacific theater of operations. After his
Viet Nam tour of duty he was stationed at Luke Air Force Base in Glendale, Arizona
where he met and married his wife, Lequita.
He graduated from Arizona State University in May, 1973, and after a 30-plus year
career as a financial advisor he joined a number of service organizations including
Easter Seals and Valley Forward, sponsor of EarthFest. He was also involved with the
National Federation of Independent Business and became the longest-serving
chairman of the Leadership Committee ever. He spoke before the ( AZ ) House Ways
and Means & Senate Finance committees. He then joined Disabled American
Veterans ( DAV ) in September of 2015. He rose quickly through the ranks and
became Chapter 8 Commander in May of 2019 where he served with Distinction for 3
years before being “ termed out”. The next year, as Vice Commander, he won the
title of National Champion Recruiter!
