Contractors Resources

Disability Insurance

Protecting Your Most Valuable Asset

Disability income insurance protects your most valuable asset-your ability to earn an income. You pay a periodic premium and, in exchange, if you are disabled and cannot work, the insurance company promises to pay you a predetermined benefit amount.

Common Contractor Statistics

Most contractors pay little attention to how their families lifestyle could be impacted should their income suddenly stop because of an unexpected illness or injury. Perhaps this is because most people feel an injury or illness will never happen to them. However, the statistics are unsettling.

According to the Insurance Information Institute (III, 2002), an individual between the ages of 40 and 65 has a greater chance of missing at least three months of work due to an accident or illness than of suffering an untimely death. Indeed, the average recovery period runs a lengthy two and a half years. Here ae some recent stats:

  • Each year, 12% of the adult population suffers a long-term disability.
  • 1 out of every 7 workers will suffer a five-year or longer disability before reaching age 65.
  • At age 35, your chances of suffering a three-month or longer disability is 50%.
  • On average, 7 out of 10 claims for Social Security disability benefits are refused the first time requested.

Statistics were obtained from Commissioner’s Disability Tables and the Senate Finance Committee.

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