Recently, I found an article that focused on how people come to make or don’t come to make the decision to purchase Disability Insurance. Although it focused on employees and Group Disability Insurance (which we tend to discourage people to solely rely on) it made some valid points as to why some don’t invest in this kind of insurance and why they may not see the need.
Important findings ( according to Prudential Insurance Company of America’s Eighth Annual Study of Employee Benefits):
– 56% of employees reported that it is “important” to have financial security if a wage earner in the family could not work due to an injury or illness, yet about 33% did not have coverage even thought most work places offer short-term disability and/or long-term disability insurance.
-In regards to women, they are increasingly becoming the main bread winners for families, their income is at greater risk, tend to make up most of the new disability claims that are filed, and are often not protected with disability insurance.
Other important findings (according to a study conducted by Prudential and Boston College’s Center of Retirement Research):
-It was found that even though people experience a tragic or debilitating event within their family or circle of friends, individuals DON’T tend to think that a illness or injury will happen to them. Therefore, they do not see the need to invest in Disability Insurance. (Side note: some of the most common reasons for disability are car accidents, work place injuries, unexpected illness/disease. People don’t plan for these.)
-People like things that are clear and specific. If an individual reads checklists and clear lists regarding disability insurance they are most likely to understand and invest. Insure Your Future has various lists (Statistics & Facts and Insurance Terms Glossary) that help explain the importance of Disability Insurance.
-Furthermore, people don’t like to drag out their time to make a decision about investing in something. They like to get the clear facts quickly to get to a swift understand about Disability Insurance and why they should invest.
To read the full article, please go to: http://ebn.benefitnews.com/blog/ebviews/behavioral-economics-understand-disability-insurance-purchasing-decisions-2742937-1.html?portal=ebn_disability_life
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We at, Insure Your Future, want to help you protect your future and income, quickly and with out taking much of your time. Call us at (800) 788- 8921 or fill out our Contact Form on our home page to get started in the valuable investment of Disability Insurance.