What Causes Long-Term Disability?

​​Risk management is at the core of any financial plan. If you’re not protected from risk, it could be impossible to reach your goals. There are a number of risks that could threaten your financial strategy, like premature death, medical expenses, home damage and more. Fortunately, you can usually use insurance to minimize these threats.
 
Many people don’t sufficiently protect themselves from one of life’s biggest risks, though. It’s disability. Contrary to popular opinion, disability is fairly common. The Council for Disability Awareness estimates that 25 percent of working adults will suffer a disability at some point in their lifetime.1
 
Surprised by that statistic? Disability is more common than you think because it can be caused by such a wide range of issues. Fortunately, you can take steps to protect yourself. Below are some tips and guidance on what causes disability and how it can impact your financial strategy. A financial professional can help you assess risk and take steps to protect yourself.

Leading Causes of Disability
 
Many workers believe disability is only caused by workplace accidents. That assumption is usually incorrect. Accidents are a leading cause of disability, but they’re not the only cause. In fact, any illness, injury or other health ailment that causes you to miss work can be a disability.
 
Back pain is a leading cause of disability, as are issues with knees and other joints. Heart attacks, strokes, cancer and other serious illnesses are also leading causes for disability claims. Some disability policies even cover time away from work for addiction and mental health issues.2
 
As you can see, this list includes a variety of health problems. Some may be the result of an accident, but others are related to illness or are simply the natural result of aging. Even if you’re in a relatively safe job, you’re still vulnerable to disability risk.

Costs of Disability
 
Long-term disability doesn’t just hurt your health. It can also impact your bank account. You may have sizable medical bills. You may need to hire someone to provide in-home care, depending on the extent of your injuries.
 
Perhaps most importantly, though, you may lose income due to your inability to work. That could impact your ability to pay your bills as well as save for retirement and future financial goals. You might have to take on debt to support yourself. Your career could be disrupted, limiting your future earnings. The costs related to disability can be substantial.
 
Unfortunately, many Americans aren’t prepared for the risk. While workers’ compensation may be available, that’s only for injuries suffered while on the job. Social Security also provides disability benefits, but the average monthly payment is only $1,197.3 That’s likely insufficient to fund your lifestyle.
 
Disability insurance can be an effective, cost-efficient way to manage a sizable risk. Contact us today at Humphrey Financial. We can help you analyze the risk and develop a management strategy. Let’s connect soon and start the conversation.
 
1http://disabilitycanhappen.org/disability-statistic/
2https://www.benefitspro.com/2018/05/17/10-top-causes-of-disability-claims/?slreturn=20180917142631
3https://www.ssa.gov/oact/STATS/dib-g3.html
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.

18185 - 2018/10/22

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