How Does Disability Insurance Work?

A large percentage of working adults in the United States don’t hold disability insurance. This is a concerning figure as the modern workforce faces a variety of challenges and risks that should be protected against.

As of 2021, it’s estimated that one in four people aged 20 will suffer from an event that renders them disabled for at least one year before they retire. However, almost half of Americans don’t have enough savings to last them for longer than three weeks. As such, having insurance to cover them in such situations seems essential.

What is Defined as a Disabling Event?

The most common reason why people tend not to have disability insurance as they don’t really understand what is meant by a disabling event. If you asked the average person what they though constituted a disabling event, you’re likely to hear of freak accidents.

The truth is, however, that accidents are not the leading causes of disabilities. The most common reasons that people in the United States have long-term disability claims are pregnancy, cancer, and mental health issues including anxiety and depression.

A Lack of Support from Employers

Most employers fail to offer long-term disability insurance coverage. It’s estimated that around 40 percent of employers offer this kind of insurance, with that percentage being massively higher at larger corporations.

This is because most small businesses don’t have access to the kind of capital that’s required to provide their employees with long-term disability coverage. Even if employers did want to offer this kind of coverage, it’s likely that it’s simply not a feasible option.

How Benely Can Help:

Benely works with a vast network of insurance carriers to find the best deals for your employees. When you partner with us, you benefit from industry experts who could find long-term disability insurance to protect your employees without breaking the bank. Contact Benely to find out more about how we can help to keep your employees future’s safe.