Updated: Jun 14
According to LIMRA, in 2021, only 14% of people own disability insurance. This number is shockingly low. Two years ago in 2019, the ownership percentage was about 20%. That means in the past two years due to the pandemic there was a 6% drop. This major drop is due to Covid-19 and here are a few reasons why the virus has had such a profound effect. Georgetown University reports that 23 million people lost their jobs due to the pandemic as of May 2021. When people lose their jobs they also lose their company provided disability insurance and need for long-term individual disability insurance. With an uncertain flow of income people also cut down on their monthly spending which drives them to select fewer benefits to save money on the benefits that they don't think they need. It was also more difficult for small companies to get access to disability enrollment due to postage delays and very limited in-person interactions. Now that the vaccinations are flowing throughout the world and people are going back to work, disability insurance is needed now more than ever. The Social Security Administration calculated that 1 in 4 workers in their 20's are expected to be out of work for at least a year due to a disability by the time they retire. It is better to get disability insurance when you are healthy rather than wait for the possibility of getting ill or injured, because you risk losing a lot of money or being denied from disability insurance completely.