Understanding the Importance of Disability Insurance

Shawn Plummer

CEO, The Annuity Expert

The Realities of Disability: More Common Than You Think

Disability insurance might seem like a ‘just in case’ service you never use. However, the statistics suggest a different story. According to the U.S. Social Security Administration, 1 in 4 individuals over the age of 20 will experience a disability during their working years. That’s a significant 25% chance – higher than most people anticipate.

Illness vs. Accidents: A Surprising Fact

When we think of disability, accidents might come to mind first. However, 90% of long-term disabilities are actually due to illnesses, not accidents. This statistic from the Council for Disability Awareness highlights the need for a broader understanding of what can lead to disability.

Financial Vulnerability: The Struggle Without a Paycheck

Financial stability is a major concern for most working Americans. A revealing survey by Life Happens found that 7 out of 10 working Americans couldn’t survive a month without their paycheck before facing financial hardships. This underscores the importance of having a safety net like disability insurance.

Disability Insurance by the Numbers

1 in 4U.S. Social Security Administration2018Probability of becoming disabled
90%Council for Disability Awareness2018Disabilities caused by illnesses
7 in 10Life Happens Survey2018Americans’ financial dependency on paychecks


Disability insurance isn’t just another expense; it’s crucial to safeguarding your financial future. Understanding the odds – a substantial 25% chance of experiencing a disability during your working life – is the first step. Recognizing that disabilities are more commonly caused by illnesses and the financial vulnerability most workers face without their regular income further highlights the need for disability insurance. With this knowledge, you can make an informed decision about protecting your income and future. Feel more secure about your financial well-being and plan for the unexpected. Contact us today for a free quote.

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Frequently Asked Questions

How does disability insurance differ from other types of insurance?

Disability insurance specifically covers the loss of income due to a disability, unlike health insurance, which covers medical expenses, or life insurance, which benefits your beneficiaries after your death. It focuses on replacing a portion of your earned income.

What are short-term and long-term disability insurance?

Short-term disability insurance covers a part of your income for a brief period, usually lasting a few months up to a year. On the other hand, long-term disability insurance provides coverage for an extended period, often until you reach retirement age, depending on the policy terms.

Who should consider getting disability insurance?

Anyone who relies on their income to support themselves or their family should consider disability insurance. This is particularly important for individuals with jobs with a higher risk of injury or those without a significant financial safety net.

Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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