Summary
- • 1 in 4 of today's 20-year-olds will become disabled before they retire
- • The average long-term disability claim lasts 34.6 months
- • Over 25% of today's 20-year-olds will become disabled before reaching age 67
- • Only 48% of American adults have enough savings to cover three months of living expenses in the event they're not earning any income
- • Musculoskeletal disorders are the leading cause of disability claims, accounting for 29% of new claims
- • The average monthly benefit paid by Social Security Disability Insurance (SSDI) is $1,277
- • Approximately 8.2 million disabled workers receive SSDI benefits
- • Only 40% of US workers have long-term disability insurance
- • Cancer is the second leading cause of long-term disability claims, accounting for 15% of new claims
- • The average waiting period for long-term disability benefits to begin is 90 days
- • 65% of initial SSDI claims are denied
- • The average age of a disabled worker receiving SSDI benefits is 55
- • Mental health conditions account for 9.3% of long-term disability claims
- • 43% of all current 40-year-olds will have a long-term disability event before the age of 65
- • The maximum monthly SSDI benefit in 2021 is $3,148
Did you know that the probability of becoming disabled for 3 months or longer is 3.5 times greater than the probability of death during ones working years? Yes, disability is more common than you may think, with statistics showing that 1 in 4 of todays 20-year-olds will become disabled before they retire. From musculoskeletal disorders to cancer, the landscape of disability is varied and complex, yet only 40% of US workers have long-term disability insurance. Dive into the eye-opening world of disability insurance statistics in this blog post, where we uncover the realities and challenges faced by millions of Americans every day.
Benefits
- The average monthly benefit paid by Social Security Disability Insurance (SSDI) is $1,277
- The average waiting period for long-term disability benefits to begin is 90 days
- The maximum monthly SSDI benefit in 2021 is $3,148
- The average monthly benefit for disabled workers' spouses is $358
- The average SSDI monthly benefit replaces about 40% of a worker's pre-disability earnings
- The average monthly benefit for disabled workers' children is $395
- In 2019, SSDI paid out $145 billion in benefits to disabled workers and their dependents
- The average waiting period for short-term disability benefits to begin is 7-14 days
- The average monthly benefit for disabled widow(er)s is $736
- The maximum SSDI benefit in 2021 is $3,148 per month
- The average monthly SSDI benefit for disabled workers in 2021 is $1,277
- The average monthly benefit for disabled adult children is $793
- The average waiting period for long-term disability benefits to begin is 90 days
- The average SSDI monthly benefit replaces about 40% of a worker's pre-disability earnings
Interpretation
The statistics on Disability Insurance paint a complex picture of support for those facing challenges. From the somewhat arbitrary 90-day waiting period for long-term benefits to the oddly specific average benefit amounts for spouses and children, the world of disability compensation seems to be a blend of precise calculation and generous approximation. With payouts that can replace a modest portion of pre-disability earnings, one might wonder if the system is a safety net or more akin to a selective trapeze act. Regardless, the multi-billion-dollar payout in 2019 highlights the profound impact of these benefits on the lives of disabled workers and their families, proving that behind the numbers lies a profound human impact.
Causes of Disability
- Musculoskeletal disorders are the leading cause of disability claims, accounting for 29% of new claims
- Cancer is the second leading cause of long-term disability claims, accounting for 15% of new claims
- Mental health conditions account for 9.3% of long-term disability claims
- Accidents are not usually the culprit causing disability. Back injuries, cancer, heart disease and other illnesses cause the majority of long-term absences
- About 90% of disabilities are caused by illnesses rather than accidents
- Injuries account for 10% of long-term disability claims
- About 25% of disability insurance claims are for mental health issues
- About 90% of long-term disability claims are for illnesses, not injuries
Interpretation
In a world where accidents often steal the spotlight, it is the quiet, relentless march of musculoskeletal disorders, cancer, and mental health conditions that truly take center stage in the realm of disability. Backed by statistics showing that illnesses, not mishaps, are the main drivers of long-term absences, the narrative of disability insurance unveils a tale of resilience against the invisible foes within our own bodies. As we grapple with the complexities of our physical and mental well-being, it is a reminder that sometimes the most formidable battles are fought not with swords and shields, but with the sheer will to overcome the adversities that lurk beneath the surface.
Claims Process
- 65% of initial SSDI claims are denied
- The average SSDI application processing time is 5 months
- Only 20% of people who apply for SSDI benefits are approved on their initial application
- The average processing time for a reconsideration appeal of an SSDI claim is 108 days
- The average processing time for a hearing appeal of an SSDI claim is 386 days
- Approximately 65% of initial SSDI applications are denied
Interpretation
Navigating the maze of Social Security Disability Insurance can feel like a marathon obstacle course, with hurdles at every turn and delays that would make a sloth look speedy. With 65% of initial claims denied, the SSDI application process seems to be playing hard to get. An average processing time of 5 months to receive a thumbs-up or thumbs-down can test even the most patient soul. But fear not, for persistence pays off, as only 20% are approved on the first try. So, grab your running shoes and your paperwork, because the race for SSDI benefits is a marathon, not a sprint.
Coverage
- Approximately 8.2 million disabled workers receive SSDI benefits
- Only 40% of US workers have long-term disability insurance
- The number of disabled workers receiving SSDI benefits has increased by 19% since 2010
- Only 40% of US private industry workers have access to short-term disability insurance through their employer
- Approximately 2.3 million disabled adult children receive SSDI benefits
- 69% of private sector workers have access to long-term disability insurance plans that cover disabilities lasting 5 years or more
- Approximately 156 million workers are insured for disability benefits through Social Security
- Only 32% of private industry workers have access to both short-term and long-term disability insurance
- Only 40% of US workers in the lowest wage quartile have access to short-term disability insurance
- Approximately 8.3 million disabled workers received SSDI benefits in December 2019
- Approximately 2.7 million disabled worker's spouses and children receive SSDI benefits
- Only 40% of US workers in small private establishments (1-49 workers) have access to short-term disability insurance
- Only 40% of US workers have long-term disability insurance
Interpretation
In a world where disability can strike anyone at any time, the numbers reveal a stark reality: while millions of disabled workers and their families rely on Social Security Disability Insurance (SSDI) benefits, a mere fraction of US workers have adequate private disability insurance coverage. The statistics paint a clear picture of the disparity between those who are protected and those left vulnerable in the face of unforeseen circumstances. It seems while we often hear the phrase "it won't happen to me," the truth is that disability knows no bounds. Perhaps it's time for a paradigm shift in how we view and prioritize disability insurance to ensure that all workers, regardless of their wage bracket or employer size, have the safety net they deserve.
Demographics
- The average age of a disabled worker receiving SSDI benefits is 55
- Women are more likely to be approved for SSDI benefits than men, with an approval rate of 38% vs 35%
- The average age of onset for long-term disability is 53
- The average monthly SSDI benefit for men is $1,384, while for women it's $1,116
- The average age of a disabled worker receiving SSDI benefits is 54.7 years
- About 45% of individuals receiving long-term disability insurance benefits are over age 50
Interpretation
These Disability Insurance statistics paint a picture of a workforce that is aging like a fine wine - with disabilities to match. Apparently, hitting the big 5-0 is like hitting the jackpot for disability benefits, with the average age of onset and approval for benefits hovering around the early 50s. And if you're a woman, congratulations, you've got slightly better odds of getting that approval stamp! But alas, the gender pay gap strikes again, with men sipping on a marginally larger monthly benefit cocktail compared to their female counterparts. So, here's to navigating the world of disability insurance with grace and a bit of statistical sass. Cheers!
Duration
- The average long-term disability claim lasts 34.6 months
- The most common duration of a long-term disability claim is 31.2 months
- The average long-term disability insurance claim lasts 34.6 months
Interpretation
In a world where time is money, the statistics on long-term disability claims serve as a sobering reminder that life's unexpected twists can put a pause on our productivity for an average of 34.6 months. At 31.2 months, the most common duration of such claims seems to suggest that just when we think we've cracked the code on setbacks, the universe throws us a curveball. So, while disability insurance may not be the most exciting investment, it's certainly a wise one in the tumultuous game of life.
Financial Impact
- Only 26% of mortgage foreclosures are caused by disability
Interpretation
While disability may not be the primary culprit behind mortgage foreclosures, it still remains a significant player, causing a notable 26% of such distressing situations. This statistic serves as a poignant reminder that unforeseen circumstances, such as disability, can swiftly and unexpectedly jeopardize one's financial stability. It highlights the crucial need for individuals to protect themselves through disability insurance, as it can serve as a financial safety net in times of crisis, preventing them from becoming part of this alarming statistic.
Financial Preparedness
- Only 48% of American adults have enough savings to cover three months of living expenses in the event they're not earning any income
- The average cost of long-term disability insurance is 1-3% of annual income
- Only 48% of American adults indicate they have researched disability insurance
- The average cost of short-term disability insurance is 1-3% of annual income
- Only 48% of American adults have enough savings to cover three months of living expenses if they become disabled
- The average cost of long-term disability insurance is between 1% and 3% of annual income
Interpretation
In a world where the statistics on Disability Insurance are as consistent as the percentage of American adults who have enough savings to cover three months of living expenses (hint: it's 48%), the need for financial protection in case of disability seems crystal clear. With the average cost of long-term disability insurance ranging between 1-3% of annual income, it's a small price to pay for the peace of mind that comes with being prepared for the unexpected. Perhaps it's time for the other 52% to catch up on their disability insurance research and start saving, because as they say: better safe than sorry – and definitely better insured than broke.
Prevalence
- 1 in 4 of today's 20-year-olds will become disabled before they retire
- Over 25% of today's 20-year-olds will become disabled before reaching age 67
- 43% of all current 40-year-olds will have a long-term disability event before the age of 65
- The probability of becoming disabled for 3 months or longer is 3.5 times greater than the probability of death during one's working years
- About 1 in 5 Americans lives with a disability
- About 1 in 8 workers will be disabled for 5 years or more during their working careers
- About 25% of 20-year-olds will become disabled before reaching age 67
Interpretation
In a world where we meticulously plan for our futures, the cold hard statistics surrounding disability insurance serve as a sobering reality check. With a 1 in 4 chance of becoming disabled before retirement, it's a stark reminder that life’s curveballs can strike at any moment. The numbers don't lie: the odds of facing a long-term disability event are higher than we'd like to believe, making disability insurance a vital safeguard in our financial well-being. So let's face these facts with pragmatic humor, because in this game of life, it's always best to have a plan B (or disability insurance) up our sleeves.
