May is Disability Insurance Awareness Month. Here are some facts our ATLAS Risk Management Group (RMG) thought you may want to consider and may surprise you:
- Just over 1 in 4 of today’s 20 year-olds will become disabled before they reach retirement age.
- 70% of American employees live from paycheck to paycheck, without enough savings to cushion the financial impact a disability may cause.
- The average monthly benefit paid by Social Security Disability Insurance (SSDI) for the beginning of 2019 was $1,234.30.
POTENTIAL FINANCIAL LOSS
- It is not uncommon for people to assume that most disabilities are the result of accidents. In reality, the majority of disabilities people suffer are due to various forms of illness.
CAUSES OF DISABILITIES
- Your income. when viewed over your entire career, is often your single, most important asset. A permanent disability therefore, can have a significant impact on you and your family. The figures below demonstrate the potential financial loss of future earnings if you were to become permanently disabled.
- For example – a 35-year old worker with an annual salary of $50,000 who experiences a permanent disability may lose up to $1,500,000 in potential earnings by age 65.
These statistics show that over the course of a person’s life, it is not uncommon for one to become disabled. What may come as a surprise to many is not only causes of disabilities, but the potential financial loss associated with a permanent disability. It is important to remember disabilities can occur at any time.
Educating yourself is a good place to start to help you reduce your own personal risk of becoming disabled.
If you have any questions or would like to discuss your options, please do not hesitate to contact us. Our ATLAS Risk Management Group (RMG) is ready to serve you.
Social Security Administration, Fact Sheet, 2019
American Payroll Association, 2018 “Getting Paid in America” Survey.
Social Security Administration, “The Facts about Social Security’s Disability Program,” January 2019
2019 Massachusetts Mutual Life Insurance Company (MassMutual®), Springfield, MA 01111-0001