The likelihood of being disabled for more than 3 months is greater than dying in any given year (Source: Society of Actuaries) 
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2 out of 3 American families live paycheck to paycheck; 70% of families can only afford to be without a paycheck for
1 month or less (Source: The Council of Disability Insurers, The Long Term Disability Claims Review: 2005) READ MORE
Disability Insurance News
June 30, 2007: Disability, the Insurance Often Overlooked
On June 30, 2007, "The New York Times" reported that people of working age are more likely to become disabled than they are to die prematurely, even though statistics indicate that twice as many people have life insurance as have disability coverage.[1]
The article cited Michael Fradkin, Vice President in Disability Product Management for Metropolitan Life Insurance Company, saying, "About 42 percent of workers have no short-term or long-term disability insurance." He explained that while many employers offer disability policies, costs are being increasingly shifted to employees.
Short-term disability insurance usually provides coverage for a week to two years after a person becomes disabled. Long-term disability insurance generally provides between 60 percent and 80 percent of a disabled person's salary for two to five years or until the person retires. If you can only afford one coverage, experts recommend investing in long-term disability. Being without income for a few months is burdensome, but being unable to ever work again is financially devastating.
Cancer, cardiovascular disease and musculoskeletal conditions are the leading causes of worker disability, according to a 2007 study for the Life and Health Insurance Foundation for Education[2]. According to the Department of Housing and Urban Development, illness is also a major factor in home foreclosures.
References
- Chura, Hillary. "Disability, the Insurance that is Often Sadly Overlooked," The New York Times, June 30, 2007.
- http://www.life-line.org/build/press050107/index.php?pt=press050107&m=press&ps=ps