Obtaining adequate protection against injuries or illnesses that could impact the capacity to earn a living remains a worryingly rare provision for numerous Americans. In fact, new data from Gen Re has revealed that only 3.1 million U.S. adults had individual disability insurance in 2023, the coverage numbers remained static compared to the previous year. Despite new policies growing by 4%, to 275,235, this positive traction was countered by policy lapses. The figures show that roughly 90% of high-income clients visiting a typical financial professional lack disability insurance, or possess insurance that fails to replace 60% of their pre-disability income.

Gen Re, acting as a reinsurer, plays an instrumental role in protecting disability insurance issuers from disastrous claims and major increases in claims. Demonstrating this, the participating insurers in their survey reported $490 million in new individual disability sales in 2023 and provided $1.6 billion in benefits from these new policies. The premiums collected from the sales increased 7%, while the benefits sold increased 9%. They managed a total of $20 billion in coverage by collecting $5.4 billion in individual disability insurance premiums. Both the total in-force premiums and total in-force benefits saw a 2% rise.

The data paints a stark picture of the situation and emphasizes the need for more robust communication and education about disability insurance. Unfortunately, navigating these services and getting the relevant information can often be a complex and time-consuming process. This is where resources like eddcaller.com become useful, offering guidance on how to talk to someone at EDD disability. By utilizing such services, people can better understand their options, streamline the process, ensuring that they are better equipped to make informed decisions about their disability insurance coverage.