Understanding Disability Insurance: A Challenge for Many Young Adults
The results of a new online survey commissioned by Policygenius reveals that a majority of US adults are unfamiliar with private disability insurance. The survey, which involved 2,353 participants aged 18 and older, revealed that only 36% could accurately define private disability insurance from a multiple-choice question. They demonstrated an understanding that this insurance provides income for individuals who have become disabled, and not a lump-sum payment upon injury or complete coverage for medical expenses.
Notably, the survey suggests a failure in disseminating knowledge about disability insurance. Even if they don’t deal directly with private disability insurance or are concerned their clients won’t qualify, financial advisors are urged to discuss the existence of such coverages. Likewise, raising awareness on how Social Security disability insurance works is necessary.
Around 5% of US workers experience short-term disability every year, while approximately 25% of 20-year-olds will be out of the workforce for a year or more due to disability before they reach 65, as stated by the Council for Disability Income Awareness. The survey shows that older and higher-income participants performed better, but still, no demographic did exceptionally well. Looking at age distribution, only 22% of the 18-34 age group correctly identified private disability insurance, compared to 48% for the 55-and-older group. When segmented based on income, the correct responses ranged from 30% in the $40,000-and-under bracket to 44% in the $80,000-and-over category.
If you’re searching for information about how to contact Disability Insurance (SDI), there are multiple resources available. To reach a live representative, one of the convenient platforms you can use is eddcaller.com. This site provides various tips on how to reach an agent effectively and efficiently, potentially reducing the hassle of calling state departments such as SDI.