More Than Two Thirds of Americans Not Prepared for Disability

May 30, 2017

Even though one in five adults experiences a long-term disability2, most Americans are ill-prepared to cover expenses if they are unable to work. The average American could not cover a $400 emergency without selling some of their possessions3 and 69 percent have less than $1,000 in savings.1

 

The average American Fidelity Assurance Company long-term disability is nearly three years. According to the Bureau of Labor Statistics, median weekly earnings of full-time workers in the U.S. in the fourth quarter of 2016 were $849.4Based on that weekly earning amount, workers would need $132,444 in savings to cover the lost income from the average long-term disability claim length of three years. On top of that, they would need funds to cover any medical expenses not covered by major medical insurance and their co-pay and/or deductible.

 

American Fidelity provides Disability Income Insurance to help protect Customers if they can’t work due to a covered injury or sickness. It provides steady benefits to cover expenses, paying a percentage of the Customer’s gross monthly earnings. American Fidelity provides disability insurance and many other supplemental benefits through employers in the education, municipal, auto and healthcare industries.

 

One teacher recently learned of the benefits of Disability Income Insurance as she prepared for surgery. “I was so surprised to find that my benefits would cover my extended recuperation even though it was summer time. Teachers don’t take the summer ‘off,’ as they have mandatory trainings, planning sessions and continuing education classes. Unfortunately, my medical condition was going to make me ineligible for these salary earning opportunities. Having surgery is very stressful. The fact that I did not face financial worries at the same time is priceless.” Deborah Sullivan, Seneca Valley High School, Germantown, Maryland.

 

Learn more about Disability Income Insurance.

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Sources:

  1. GOBankingRates.com Survey 2016 https://www.gobankingrates.com/personal-finance/data-americans-savings/
  2. Center for Disease Control and Prevention, April 20, 2015 https://www.cdc.gov/ncbddd/disabilityandhealth/features/key-findings-community-prevalence.html
  3. Federal Reserve, May 2016 https://www.federalreserve.gov/2015-report-economic-well-being-us-households-201605.pdf, page 9
  4. Bureau of Labor Statistics, Jan. 24, 2017 https://www.bls.gov/news.release/pdf/wkyeng.pdf

Media Contacts

Melody Wortmann, AVP of Communications, Creative Services and Culture
P: 405-523-5979
Melody.Wortmann@americanfidelity.com

 

Lindsey Sparks, Corporate Communications Team Leader
P: 405-523-5901
Lindsey.Sparks@americanfidelity.com

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