NEWARK, N.J.--(BUSINESS WIRE)--According to 2013 Social Security Administration statistics, a 20-year-old worker has a three in 10 chance of becoming disabled before retirement age. With the likelihood of becoming disabled affecting so many, Prudential Group Insurance, a Prudential Financial company (NYSE:PRU), is urging Americans to boost their knowledge of solutions available to help them deal with a potential income interrupting injury or illness. Disability insurance does just that in providing replacement income in the event someone can no longer work due to an illness or injury.
“Today is the best time to consider how to help protect your financial security in the event you’re not able to work. And during May – Disability Insurance Awareness Month – we’re placing extra attention on the benefits of disability insurance as it can be a vital tool to help protect financial wellness and security,” said Jake Biscoglio, vice president, disability, Prudential Group Insurance. “The work we do is a critical part of helping to close gaps in knowledge and awareness that are a barrier to understanding disability insurance.”
According to the Council for Disability Awareness’ America’s Income Protection Picture 2014 Disability Awareness Study 57% of working adults report having no private disability insurance. And one third of people surveyed would consider buying disability insurance if they knew more about it.
Disability insurance protects against one of the most common risks to your household income: becoming unable to work due to an injury or disability. If you are unable to work, your income has been reduced or eliminated while your living expenses remain the same. The purpose of disability insurance is to provide income to pay the expense of life even though you can't work due to a disability.
Below are a few things every American should keep in mind when considering disability insurance:
- Insure yourself as a means of helping protect your income and your family’s financial security
- Educate yourself using online tools and resources to better understand the benefits of disability insurance and learn how to estimate how much you need.
- Enroll in disability insurance through your company’s workplace plan. These plans are often the most cost effective means of obtaining this coverage.
- Investigate private or individual disability insurance to supplement any workplace coverage you may have.
- Understand the difference between disability insurance and workers compensation: Only disability insurance provides an all encompassing level of coverage for illnesses or injuries that occur in or outside the workplace.
- Recognize the impact of aging and that physical changes occur that increase the risk for experiencing a disability, for example muscle strength, cardiovascular function and endurance often decreases.
- Consult with a financial professional to ensure you have adequate coverage. Don’t be afraid to ask for your help.
“We’re committed to helping better educate consumers about income protection plans, and to also equip our customers with products and solutions that are cost effective,” said Biscoglio.
For more information on financial wellness and the role disability insurance plays in a comprehensive financial wellness strategy, visit www.prudential.com/disabilityinsurance
Prudential Group Insurance manufactures and distributes a full range of group life, long-term and short-term disability and corporate and trust-owned life insurance in the U.S. to institutional customers primarily for use in connection with employee and membership benefit plans. The business also sells critical illness, accident, accidental death and dismemberment and other ancillary coverages and provides plan administrative services in connection with its insurance coverages. Group Insurance coverages strive to facilitate protection from risks that are difficult to predict, thus fostering overall financial wellness for employees and their families.
Prudential Financial, Inc. (NYSE:PRU), a financial services leader, has operations in the United States, Asia, Europe and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/.
Group coverages issued by The Prudential Insurance Company of America, 751 Broad Street, Newark, NJ 07102. Prudential, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.