Trends in Personal Finance

Americans Not Planning for Disability Despite Odds

New Survey Reveals Lack of Coverage and Interest

Bloomington, Ill., September 18, 2007 — Though the odds of disability run high for American workers, only 17 percent indicate they have enough disability insurance to replace most (14 percent) or all (3 percent) of their income, according to a new survey by COUNTRY Insurance & Financial Services. Further, 35 percent say none of their income would be replaced if they were unable to work.

According to the Social Security Administration, 30 percent of American workers will suffer some type of disability in their lifetime.

Many people surveyed say they would not be able to maintain the same quality of life for very long if they became disabled. In the short-term, one-third (33 percent) believe they could not maintain their lifestyle if disabled and out-of-work for 90 days, and another 18 percent are unsure.

Disability Insurance low on priority list:

Sixty-two percent of Americans value other forms of insurance protection, such as homeowners (43 percent) and auto insurance (19 percent), over disability insurance. Just 22 percent value disability insurance most.
If they were disabled, one quarter (26 percent) say they either do not know where their income would come from or their income would come from no where.
Nearly one-in-three (31 percent) expect their disability income to come from the government, despite Social Security Administration reports that less than half of all disability claims are approved.

“People should consider income their most valuable asset,” says Keith Brannan, director of the Financial Security Office at COUNTRY. “It is important to determine if you have adequate coverage to protect your income before the unforeseen happens and avoid the risk of losing other important assets. In fact, research shows disability causes nearly half of all mortgage foreclosures.”

Survey highlights:

Topic:	All Americans	Men	Women
None of their income would be replaced if disabled	35 %	31%	39%
Could maintain current lifestyle if disabled for 90 days	49%	54%	45%
Believe their disability income would come from government	31%	26%	35%

The COUNTRY disability insurance survey is based on a national telephone survey of at least 3,000 Americans and is compiled by Rasmussen Reports, LLC, an independent research firm. The margin of sampling error for a survey based on this many interviews is approximately +/- 3 percentage points with a 95 percent level of confidence.

About COUNTRY
COUNTRY Insurance & Financial Services serves about one million households and businesses throughout the United States. It offers a full range of financial products and services from auto, home and life insurance to retirement planning services, investment management and annuities.

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