Disability is the leading cause of personal bankruptcies and causes nearly 50% of all mortgage foreclosures, compared to 2% by death (Source: The Council of Disability Insurers, The Long Term Disability Claims Review: 2005) 
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48 percent of VA Mortgage Foreclosures are attributed to disability (Source: FHA, Disability Income Concepts, 1998) READ MORE
Disability Insurance News
July 4, 2006: Safety Net – Insurance That Works When You Can't
No one plans to fall ill or get injured and even fewer plan for it. However, playing it safe and protecting yourself is a wise investment, according to a July 4, 2006, article on the Forbes Web site.[1]
"People naturally think they should insure their home and car, yet they are more likely to suffer a disability than lose their home in a fire or die prematurely," says Deanna Strable, Vice President of Specialty Benefits at Principal.
A Rand Health[2] study published in January, 2006, found that the number of people aged 30 to 49 who are disabled increased by more than 50 percent between 1984 and 2000. During the course of a person's career he or she is 3.5 times more likely to be injured and need disability insurance than to die and need life insurance, stated the article.
You should review your disability insurance coverage if you are self-employed, have a family, are the primary breadwinner and are under 45 years of age with 20 to 25 years of work ahead of you.
The article found that more than half of the employers in the U.S. offer some group coverage, but few employees are aware of what they have.
"Often what they have is not enough," says Maria Morris, senior vice president of individual disability at MetLife. "People don't realize how important this insurance is until they need it."
Benefits from all disability insurance policies combined are generally limited to 60 percent to 70 percent of salary, says Susan M. Baker, manager of disability income sales and marketing at Berkshire Life, a subsidiary of Guardian Life. One tip she gives is to pay premiums with after-tax dollars. This stretches your benefit because the insurance payout is after tax.
References
- Coolidge, Carrie. "Safety Net: Insurance That Works When You Can't," Forbes.com, July 4, 2006. http://www.forbes.com/investmentguide/forbes/2004/0607/192.html
- http://rand.org/health/