Skip to main content
  • Solutions for Employers

    Enhance your benefits program with a custom strategy that not only engages your employees and helps retain your talent—but also lightens the load on HR.

    How We Help
    • Strategic Partner
    • Professional Enrollment
    • Benefits Education
    • Total Benefits Solution
    • Benefits and Services
    Who We Serve
    • Education
    • Public Sector
    • Automotive
    • Manufacturing
    • Healthcare
  • Resource Library

    Explore our catalog of blog articles, educational videos, customer stories, and more.

    View All Resources

    Resource Types
    • Blog Articles
    • Videos
    • Customer Stories
    • Tools
    • Help Center
    • All Resources

    An Employer's Guide to a Successful Enrollment

    Download the free how-to guide to get your enrollment strategy on the right path. 

    Download Now
  • Help Center
  • Login
  • Strategy
  • Reimbursement Accounts
  • Supplemental Benefits
  • Customer Stories
  • Compliance
American Fidelity Logo

Understanding the Importance of Disability Insurance for Millennials

May 02, 2018

4 minute read

Category: Supplemental Benefits

millennial sipping coffee while working on a computer

Zip-lining in Costa Rica. Parasailing in Cabo. Skiing in Colorado. In today's world, millennials have more access than ever before to new experiences, new adventures, and new opportunities to cross items off their bucket lists.

Because of their active lifestyles, disability insurance is an important part of their benefits package.

Disability insurance exists to provide financial protection if the worst should happen. However, many millennials choose to forgo disability insurance.

Common Reasons Millennials Do Not Elect Disability Insurance

Educating millennials on the importance of disability insurance is crucial during your enrollment season. Here are a few of the common reasons millennials don't elect disability insurance, and how to address those concerns.

"It won't happen to me"

What many people don't know is disabilities preventing them from working are far more common than they may think. More than one in four of today’s 20-year-olds can expect to be out of work for at least a year because of a disabling condition before they reach the normal retirement age.1

Contrary to popular belief, accidents are NOT usually the culprit of disability. Injuries such as fractures, sprains, and strains of muscles and ligaments are the most common reasons for long-term disability claims.2 Because of this, it’s important for millennials to understand the chances of becoming disabled may be much higher than they realize.

“Money is tight”

One of the main reasons millennial employees often choose to forgo disability insurance is because they think it will increase their monthly financial expenditures. However, the cost of not having disability insurance may be even higher. Without disability insurance, employees may deal with financial issues as they pay for living costs without a salary and may eventually depleting their savings.

Disability insurance is often called "income protection" because it provides a percentage of salary in the event of a qualified illness or injury. This may help give peace of mind for employees as they live their lives to the fullest with fewer financial fears.

How to Educate Your Employees on Disability Insurance

When discussing disability insurance with your millennial employees, consider asking them the following question: If you were to become disabled, how long could you survive without a paycheck?

This question can provide one of the most revealing insights into the amount of disability insurance an employee should elect. Employees sometimes believe that they will be able to use their sick days or paid time off to cover unexpected situations, but the duration of the average long-term disability claim is 34.6 months.3

Once you've established the importance of disability insurance, provide numerous educational opportunities for your employees to learn about disability insurance. Group sessions, materials, and one-on-one appointments with your benefits provider can help provide peace of mind for your employees as they choose the best disability insurance for their stage of life.

Learn More About Disability Insurance 

 

This blog is up to date as of May 2020 and has not been updated for changes in the law, administration or current events.

  • Tags:
  • Disability

Share:

Related Disability Articles

Who needs disability insurance?

May 01, 2024

3 minute read

Who needs it? Probably everyone. Discover the importance of disability insurance in protecting your income during unexpected illness or injury.

  • Tags:
  • Disability

What Your Medical Plan Won't Cover

November 09, 2023

3 minute read

An affordable health insurance supplemental plan can help cover the costs left by your regular health insurance, so you don't have to worry about it.

  • Tags:
  • Education
  • Cancer
  • Accident
  • Disability
  • Gap
  • Hospital Indemnity
  • Critical Illness
  • Medical

Chasity’s Story: Focus on Surviving

June 07, 2023

3 minute read

Chasity’s diagnosis was a surprise, but her cancer and disability policies helped her be prepared.

  • Tags:
  • Testimonials
  • Disability
  • Cancer

Our logo
  • Strategic Partner
  • For Education
  • For the Public Sector
  • For Automotive
  • For Manufacturing
  • For Healthcare
  • Professional Enrollment
  • AFenroll®
  • Benefits Education
  • Total Benefits Solution
  • Culture and Engagement
  • Benefits and Services
  • Resource Library
  • Blog
  • Customer Stories
  • Tools
  • Help Center
  • Forms
  • AFmobile® App

Contact Us

Careers

  • About Us
  • Annual Report
  • Community Giving
  • News Center
  • facebook
  • Youtube
  • linked-in

© 2025 American Fidelity Assurance Company

  • Privacy Notices |
  • Report Fraud |
  • Terms of Service |
  • Licensing |
  • Special Notices |
  • Accessibility |
  • Cameron Enterprises

1Council for Disability Awareness: The Importance of Disability Coverage in Uncertain Times. April 2020. https://disabilitycanhappen.org/wp-content/uploads/2020/04/CDA-DIAM2020-factsheet.pdf

2Council for Disability Awareness: The State of Disability Coverage in America - Key Facts in 2019; May 2, 2019

3Council for Disability Awareness: Chances of Disability; Accessed on November 27, 2019 from www.disabilitycanhappen.org 

ESB-6625-0520