The
“If there were three-times the sales agents currently selling insurance, a lot more people would have disability coverage,” says President and CEO of AccuQuote Byron Udell, who sells disability insurance in the Chicago metropolitan area. “The number of insurance agents has decreased and disability insurance has never been an easy sell so people don’t hear about it.”
While May is Disability Insurance Awareness Month, a Hartford Benefits for Tomorrow study found that only 44 percent of single Americans have insurance, which means 56 percent do not have disability coverage. Further emphasizing the lack of awareness is
“The older you get, the more expensive disability insurance is to obtain. If you buy it young, the premiums remain level. Everybody needs it,” Udell told Insurance Networking News. “Even among those Gen Y workers who do have coverage, there is a need to ensure that coverage amounts are adequate.” Among those surveyed for the MetLife study that do have disability insurance, 40 percent are not sure what percentage of their income is covered.
“The numbers indicate that consumers don’t understand what they own. The time to ask questions about what you have is before you get disabled, but most workers don’t want to think about the possibility of being disabled,” Udell said.
Although arthritis is the leading cause of disability, the
“The disconnect is that disability insurance is expensive. If it’s not offered on the job, it’s expensive for most workers,” said Byron. “A decent disability contract that covers 60 percent of income, cost of living increase, 90-day elimination period and a benefit period that lasts to when you're 65 years old costs $2,500 to $3,000 a year on a salary of $100,000.” As for gender, the
“Depending on the carrier, women pay 20- to 40-percent more for disability insurance than men because there are a few more things in their bodies that can go wrong. Men can develop prostate cancer in their 50s while women can generally wind up with female disabilities that are illness-related earlier in life,” Udell said.