In July 2013, LIMRA conducted an online survey of 1,636 U.S. consumers to gauge their understanding and basic knowledge of disability insurance, government programs, and the risk of being disabled.
They asked consumers a series of true/false and multiple-choice questions on topics selected to measure how well consumers understand both disability insurance and the financial risk of disability. Questions covered how disability plans work, common benefit features and associated costs, the risk of becoming disabled and government programs such as workers compensation and Social Security Disability. The sample was weighted to be representative of the general population.
Correct answers are indicated in red:
What is the chance of a worker age 20 or older becoming disabled before they retire?
- 10% (14%)
- 20% (18%)
- 25% (19%)
- 33% (13%)
- Don’t know (36%)
What is the leading cause of disability?
- Serious accident (25%)
- Serious illness, such as cancer, stroke, heart disease (21%)
- Depression/anxiety (4%)
- Back/joint pain (17%)
- Lifestyle choices/substance abuse (5%)
- Pregnancy (2%)
- Don’t know (26%)
How long does the average long-term disability last?
- 1 year (13%)
- 3 years (14%)
- 5 years (8%)
- More than 5 years (18%)
- Don’t know (47%)
On average, how soon after someone becomes disabled will a long-term disability policy start paying benefits?
- 1-3 months (20%)
- 3-6 months (23%)
- 6-9 months (12%)
- 9-12 month (7%)
- Don’t know (38%)
Workers compensation covers injuries that occur on and off the job.
- True (18%)
- False (66%)
- Don’t know (16%)
Your disability payment may be reduced if you qualify for Social Security Disability payments.
- True (44%)
- False (11%)
- Don’t know (45%)
Disability benefits can be paid weekly, monthly, or as a lump sum.
- True (37%)
- False (21%)
- Don’t know (42%)
Disability benefits are not taxable
- True (28%)
- False (33%)
- Don’t know (39%)
Disability insurance replaces 100% of your salary, including bonuses.
- True (8%)
- False (67%)
- Don’t know (25%)
(Split sample of 50% getting part 1 and 50% getting Part 2)
Approximately, how much does an average disability policy/benefit obtained or purchased through work cost per year, regardless if you or your employer pays the premium?
- Less than $200 per year (11%)
- $200 – 400 per year (14%)
- $400-600 per year (11%)
- $800-1,000 per year (10%)
- Don’t know (54%)
Approximately, how much does an average disability policy that you purchase yourself outside of work cost per year?
- Less than $400 per year (12%)
- $400-600 per year (13%)
- $800-1,000 per year (10%)
- $1,500-2,000 per year (8%)
- Don’t know (57%)
What’s your most valuable asset? The ability to earn an income.
When is the best time to buy Disability Insurance? The moment you start earning a paycheck.
If you have questions or for more information, contact us.