MetLife Says Less Than Half of People on Disability Have Income Coverage
A new study from MetLife revealed that three in five individuals who were out of work for at least six months as a result of a disability did not have disability insurance. The study, known as the MetLife Study of the Emotional and Financial Impact of Disability, also found that among the individuals who did have disability coverage, about one-third of their income was protected on average.
Workers Have Insufficient Disability Coverage
The disability insurance coverage amounts that the study shows most American workers have is undoubtedly insufficient for true protection in the event that an injury or illness were to turn into a full-on disability. In fact, according to the study, only 17 percent of those studied felt that that they have been completely covered financially if there became disabled at least a year ago.
The impact of a lack of disability insurance coverage can be devastating to a household. Here are stats from the study that show just that:
- 54 percent of those who did not have adequate coverage felt that their disability had a major or devastating impact on their relationships.
- 77 percent of those who did not have adequate coverage experienced feelings of depression and anxiety during their disability.
- 88 percent of those who did not have adequate coverage said their disability had a major or devastating impact on their feelings of financial security.
- 77 percent who didn’t have adequate coverage said they had to withdraw money from savings, investments or retirement accounts.
- 50 percent with inadequate coverage said they borrowed money from friends or family as a result of their disability.
- 62 percent without adequate coverage said they are currently living paycheck-to-paycheck.
The stats from the study show that those who must go without disability insurance or have inadequate coverage suffer in a number of financial and emotional ways. It is for this reason that experts suggest taking on quality coverage that adequately protects the income.
Do You Have Disability Insurance?
The study showing the lack of disability insurance coverage came at a perfect time since May is Disability Insurance Awareness Month (DAIM). During this month, insurance companies are promoting the purchase of this type of coverage to ensure you and your family members are protected adequately in the event that the breadwinner(s) are injured.
Some tips for ensuring you have the right disability life insurance coverage include:
- Calculating how much income you need to cover your expenses each month to determine the amount of coverage you need.
- Finding several experienced brokers who specializes in this type of coverage.
- Comparison shopping to make sure the broker you choose and the coverage they offer are both a match for you.
While you may not want to take on disability insurance as an extra expense, as you can see from the MetLife study, the repercussions of not doing so could be significant. So take time to shop for coverage in your area to find the most affordable and comprehensive option for you.