Tuesday, September 27, 2011

Disabled Economy?

From time to time, we note trends in various lines of insurance, and a recent email from the Council for Disability Awareness has information from the 2011 Long-Term Disability Claims Review.

Disability insurance replaces lost income in the event of an injury or (usually long-term) illness. It's available in both group and individual flavors.

I found these results particularly noteworthy:

1) Over half 50% of those carriers which participated "reported increased claim incidence, and most suggested the increase was impacted by the recession."

That conclusion's not as far-fetched as it may sound: these numbers track pretty well with previous recessions.

2) The number of folks covered by disability insurance actually declined, and again the economy was cited as the primary factor.

This also makes sense: if you're out of work, you don't need (and may not be able to afford) disability insurance.

3) On the other hand, applications for Social Security Disability benefits increased by almost 3 million people in '10, "the most ever."

That's the "good news." The bad news is that the percentage of these applications that were actually approved by Social Security remained pretty much "near its 25-year low."

There's much more in the report, including this interesting graphic:

Click here for the full report.

[Hat Tip: Barry Lundquist]

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