NAIFA applauds the launch of the Congressional Income Protection Caucus that will focus on raising awareness about the risk of disability and encourage preparedness among all Americans.
“Many workers underestimate the risk of losing the ability to work due to illness or injury, despite the fact that fully one-third of Americans will become disabled for six months or more during their working lives,” the caucus leaders said in a letter. The Social Security Disability program often serves as the primary backstop for disabled workers, but such safety net is often “inadequate.” With the Social Security Disability Support payments averaging only $1,130 a month, Americans with disabilities are forced to rely on other public programs for assistance.
Private disability insurance will help. An economic analysis by Charles River Associates showed employer sponsored benefits such as disability insurance save the government up to $4.5 billion per year by reducing pressure on the public safety net.
“NAIFA appreciates the work of Sens. Hagan and Kirk and Reps. Fincher and McCarthy for putting the spotlight on this critical issue through their founding of the Congressional Income Protection Caucus,” said NAIFA President John Nichols, MSM, CLU, an expert and authority in disability insurance.
“With 56 million millennials entering the workforce by the end of 2014, the next tidal wave of workers need to recognize that there is a 30 percent chance of them suffering a disability to an accident or illness which could prevent them from earning an income," Nichols said. "Disability insurance needs to become a must have to help protect their capability to earn a living.”
“The Congressional Income Protection Caucusis is long overdue. Disability insurance protection is an important element that is overlooked by many. Having protection at the time of a disability provides many benefits and impacts the individual, their support system, the community and even our economy."