Disability Insurance Industry Analysis Report Aug-2023

The insurance industry is very complicated, but diving into disability insurance data can give a lot of knowledge. Disabilities is a broad concept, with some being more serious than others.

There are however many aspects that affect the kind of coverage people get through insurance. The United States alone, there are a total of 51 million adults working without disability insurance.

This might not seem like something to be concerned about however, no one would expect to be disabled from the beginning.

Though some individuals have a higher chance to be disabled than the rest, it’s never a bad idea to look into applying for disability insurance.

Yes, it’s true that it’s not required for everyone however, this kind of insurance could save the day when something unexpected happens. This article will present a number of figures on the disability insurance market and how it relates with workers.

Disability Insurance Statistics in 2023

Key Statistics

  • In 2019, approximately 7.3 percent of disabled people were not employed.
  • 25 percent of disability claims made for short-term disabilities are attributed to pregnancy
  • 40 percent of disability insurance claims are either rejected or rated, or are accepted in the absence of an exclusion
  • About 5.6 percent of Americans will suffer from a short-term handicap each year
  • In fact, illnesses are responsible for a majority of claims for long-term disability.

There is a Need for Disability Insurance

A lot of people fall into the trap of thinking that they only require disability insurance when they loose a limb or are permanently crippled in any way.

This isn’t far from the truth, considering the insurance cover a wide range of aspects of long-term and short-term disabilities.

It’s also understandable why someone might not go to purchase disability insurance. But, there are a variety of aspects of life that could make certain people join.

For instance, those who have higher risk jobs might consider it since they are at an above-average risk on a regular basis.

You’ll also be amazed to discover what the disability insurance coverage is since it’s beyond just surface-level issues. The risk of injury, pregnancy, or diseases are just a few examples of what insurance may be able to cover.

Below are some interesting facts related to the field and its importance in our current world.

What are the chances of Being Disabled?

A majority of people don’t spend their lives every day worrying about the possibility of being disabled. However, it shouldn’t get neglected, since around one out of four people in their 20s could expect to be off work for a minimum of a year due to a disability.

These odds tend to rise with age, since 35-year-olds are at a 50% risk of becoming disabled for three months or longer before reaching the threshold of age 65. It seems like a slight or substantial disability is a likely scenario for a lot of people.

Other crucial statistics that relate to the odds of being disabled include:

  • 25% of young people will be disabled in some way before the age of 67.
  • 16 percent of Americans suffer from a physical disability that results from physical function
  • 50 percent or more of handicapped Americans comprised of people between age between 18 and 64
  • 48 million Americans are affected by hearing loss
  • More than One million Americans are legally blind

The list continues from here. It may seem rather overwhelming, however there’s a huge list of elements that contribute into the development of a potential handicap. Certain conditions are relatively easy to treat, while others can be quite debilitating.

In the following table, you’ll learn the probability of being disabled for at least three months before the age of 65 depending on the age group you are in.

Age-related Chance of Disabilities (3and a half months)

25 years old, 58 percent

30 years old, 54 percent

35 years old, 50 percent

40 years old and 45 percent

Age 45-years old 40 percent

50 years old, 33 percent

55 years old, 23 percent

Of course, there’s a lot things you’re able to do to avoid disability however, a majority of them just come from normal aging.

Additionally, there’s data that reveals the typical length of disability in different age groups.

Be aware that these figures are based on long-term disabilities only.

  • 25 years old equals 2.1 years
  • 30 years old equates to 2.5 years
  • 35 years old equals 2.8 years
  • 40 years old is 3.1 years
  • 45 years old equals 3.2 years
  • 50 years old equals 3.1 years
  • 55 years old is 2.6 years

The majority of these figures are close, however some people may be affected for a significantly shorter or longer duration.

When it comes to claimants for disability, figures become more complex, because each individual’s circumstance is individual.


The statistics on Disability Claims

As we mentioned that the most frequently cited short-term disability claims are relating to pregnancy. In the case of disabilities that last for a long time, the musculoskeletal diseases dominate at 29 percent.

If you’re looking at claims related to military service Tinnitus is among the most prevalent, considering that hearing loss is quite commonplace in the military.

While these are the most prevalent kind of claim in their class but there are different kinds of disabilities that are to them.

Short-Term Disability

However, regardless of whether they’re classified as the short-term, the long-term or military-related, you’ll find a vast array of disabilities that are associated with each type of disability.

In the case of short-term disability There are a variety of claims connected to specific musculoskeletal issues and digestive issues, psychological health problems, as well as different injuries.

It is possible to take a closer understanding of these figures from the chart below.

Short-Term Disability The % of Claims

Pregnancies at 25 percent

Back pain, musculoskeletal issues and hips, spine the shoulders and various other regions. 20 20%

Digestive problems (hernias as well as gastritis) 7.8 percent

Mental health problems (anxiety as well as depression) 7.7 percent

Injury resulting from fractures muscles strains, fractures, and strains 7.5 percent

Long-Term Disabilities

Certain types of disabilities are included in this category, too.

Naturally, long-term disabilities are often associated with greater health problems and it is possible to encounter certain types or disabilities unique to long-term disabilities.

The table below outlines the most frequently cited claims relating to long-term disability.

Long-Term Disability percent of claims

Musculoskeletal disorders 29%

Cancer 15 percent

Pregnancies 9.4 percent

Mental health disorders 9.1%

Injuries: 9 Percent

The other type of insurance that constitutes an important portion of the disability insurance industry is due to injuries resulting from military service.

Another grouping that has many potential disabilities There’s plenty of evidence-based facts that highlight several of the more frequent claims.

Disabilities relating to military

Tinnitus is one of the most commonly reported illness that results in insurance claims for those who are in the military.

It’s also automatically graded at 10% since it’s prevalent that 93.6 percent of veterans an element of this percentage. It’s important to remember that it’s designed so that there’s an lower rating for Tinnitus.

Other common disabilities related to military include:

  • Bilateral hearing loss
  • The cervical and lumbosacral strains
  • Migraines
  • The post-traumatic stress syndrome (PTSD)
  • The sciatic nerve is paralyzed
  • Spinal degenerative arthritis
  • Scars
  • Limitation of knee flexion
  • Limitation of motion in the ankle

These are just a few of the most commonly encountered but in reality the classification includes the seemingly endless list of possibilities for short- as well as long-term disability.

As you would imagine, disability could cause immediate issues in terms of unemployment rates that is a significant reason why disability insurance is vital.

Final Notes

The stigma of disability is not a joke, no matter if they’re long-term or short-term. If you think about how they could significantly affect your cash flow as well as your potential for finding employment, they could result in lasting damage to your lifestyle in many ways.

With the aid from disability insurance you’ll be able to relax knowing that you’re protected should you experience an unexpected.

This article gave a complete analysis of disability insurance rates to show how prevalent mental and physical disability is in the United States.

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