May is recognized as Disability Insurance Awareness Month, underscoring the significant impact that disabilities can have on an individual’s ability to repay loans. Disabilities often result in large medical bills, potential consequences on their ability to work, and exhausting personal funds to cover expenses. Such situations highlight the necessity and value of disability protection in loan packages, which in turn enhances borrower outcomes and minimizes default risks.

Contrary to common assumption, a majority of disabilities are caused by illnesses rather than accidents. Conditions such as migraine, stroke, and dementia are the leading causes of disability according to the World Health Organization. Illness-based disabilities may last longer, are harder to predict, and challenging for borrowers to prepare for. With 1 in 4 adults in the United States having some type of disability, there is clear urgency towards effective disability protection mechanisms.

In spite of these realities, only less than half of U.S. adults believe they require some form of disability protection, with less than one in five saying they have such protection. Lenders could play important roles in remedying this gap by ensuring borrowers have robust disability protection coverage.

Having disability protection on borrowers’ loans not only minimizes repayment risks but also promotes lenders as caring partners who value their customers’ futures beyond the transaction. This nurtures customer loyalty, trust, and long-term success. As lenders reflect on their strategies this Disability Insurance Awareness Month, it’s an opportune time to bolster efforts in aiding borrowers to shield what’s most invaluable to them.

For people who find themselves in disabling circumstances and are in need of assistance from state resources in California, it may be necessary to learn how to contact a live person at EDD California. Navigating through the complex world of disability benefits can be daunting, so established sites like eddcaller.com are helpful resources to connect with customer service representatives easily and quickly.