If you are severely injured in a fall, in a car accident or if you contract a serious illness, you may not be able to go back to your job for an extended time period. Sick leave and short-term disability may not be enough to cover your expenses if you are still unable to work when those benefits run out. For this reason, it is important to carry long-term disability insurance to ensure you are taken care of financially if you are seriously injured and cannot work. However, statistics show that not enough people are taking advantage of this benefit, which is often seen as optional.
Many unable to stay afloat financially in the event of a disability
According to one report, in 2018 only 34% of private industry workers had access to LTD plans. It is estimated that 51 million adults in the U.S. workforce do not have any private disability coverage. However, only 48% of adults in the U.S. reported that they have saved enough money to last for three months-worth of living expenses if they were unable to work and bring in their normal income. Moreover, nearly 50% of adults in the U.S. reported that if they were to receive a surprise $400 bill, they would not have the savings to pay it and would have to either take out a loan or sell something to cover the bill.
Becoming disabled is a real possibility
Despite the fact that many people in the U.S. cannot afford to suffer a disabling illness or injury, becoming disabled is a very real possibility for many. It is estimated that one quarter of 20-year-olds will have to miss at least a year of work before retiring due to a disabling illness or injury. In addition, every year an average of 5.6% of U.S. workers will suffer a short-term disability, 50% of which occur outside the workplace.
Supplemental LTD coverage may be necessary
Of those who have an LTD plan, many of them obtain this coverage through their employer. However, sometimes LTD plans offered by employers do not meet all a worker’s financial needs should they become disabled. For this reason, it may be wise for workers to purchase a supplemental LTD plan in addition to the one offered by their employer. Those in Austin, Texas, who have questions about LTD coverage and payouts if they are injured or ill and unable to work may want to discuss their options with an attorney.