The new life insurance for life changing illness events

What could be worse than death? A look at new life insurance for life changing events.




Life changing events can happen to anyone, at any time. And now you can protect yourself from financial damages with new life insurance products that are designed to offer coverage for critical illness, critical injury and chronic illness. As an example, a new type of life insurance can provide early access to cash benefits (before you die), for things such as:




Critical Illness (Cancer, Heart Attack, Stroke, Organ Transplant, etc.)

Critical Injury (Coma, Brain Injury, Paralysis, Burns)

Chronic illness (assistance with daily living, bathing, eating, dressing, transferring, etc.)

Terminal illness (Illness where death is expected within 12-24 months.)



Financial speaking, a serious illness or injury resulting in a loss of income can leave a family in financial ruin. These life changing illness events aggravate the need for goods and services as a going concern and in some cases, the cost of necessities may increase with disability. An example of additional cost associated with disability is rehabilitation.


Rehabilitation services are an extremely useful service that is needed to help a disabled person return to good health or a normal life.


The following statistics gathered from credible third-party sources support and describe the need for disability, critical illness, critical injury, chronic illness and terminal illness protection.



Every “1 second”

A disabling injury occurs in the U.S. every one second. A fatal injury occurs every four minutes.– National Safety Council®, Injury Facts® 2010 Ed.



Harvard University reports 62% of all personal bankruptcies filed in the U.S. in 2007 were due to medical expenses.

– June 4, 2009. The American Journal of Medicine


Unexpected sickness and injuries contribute to 350,000 personal bankruptcies each year.

(Source: “Illness and Injury as Contributors to Bankruptcy,” Health Affairs, 2005)



3 in 10 Workers

Disability will happen to almost one-third of workers before they retire. 

-Social Security Administration, Fact Sheet, January 31, 2007



Every 13 seconds

Injuries cause disability every 13 seconds, motor vehicle deaths occur every 12 minutes.

– National Safety Council®, Injury Facts® 2008 Ed.


3,000 per Hour

The amount of Americans that became disabled in the past hour is almost three thousand.

-National Safety Council, “Injury Facts 2008 Ed


35% increase in disability

Since 2000, the number of disabled American workers has increased by thirty-five percent.

– Social Security Administration, 2007


Every 3 seconds

Disability from injury happens every 3 seconds at home and fatal injuries occur every 12 minutes.

National Safety Council®, Injury Facts® 2008 Ed.



2.1 million

Motor vehicle accidents disabled 2.1 million in 2008; fatal motor vehicle accidents were 39,000. 

– National Safety Council®, Injury Facts® 2010 Ed.



490 Americans

Is the amount of Americans that became disabled in the last 10 minutes.

– National Safety Council®, Injury Facts® 2010 Ed.


43% of all people

Prior to age 65, forty-three percent of all people age 40 will have a long term disability event.

– JHA Disability Fact Book, 2008


Disability More Likely than Death

Being disabled for three months is more likely than dying in any given year.

-Society of Actuaries


51.2 million Americans

Eighteen percent of the population – some 51.2 million Americans has some level of disability.

– U.S. Census Bureau, July, 2006


Employment Rate of People with Disabilities

33.1 million people with disabilities are between the ages of 16-64.

Of those disabled, 18.5 million are working.

55.8% of disabled working age Americans are working.


Of the 18.6 million working age Americans,

60% of men with disabilities are employed.

51..4% of women with disabilities are employed.

US Census Bureau, Disability Status 2000



The new life insurance plan is not like the life you’re use to


Council For Disability Awareness found:


90% of American workers underestimate their own chances of becoming disabled.


85% express little or no concern that they might suffer a disability lasting three months or longer.


56% do not realize that the chances of becoming disabled have risen over the past five years

– Council for Disability Awareness, 2007 Disability Awareness Survey


1 in 5 U.S. Employees

U.S. employees to miss work for at least a year before they turn 65 due to an accident or sickness.

(Source: Life and Health Insurance Foundation for Education, Nov 2005)


Life changing illness events can wreck financials, savings

The challenging aspects of disability and retirement savings


Most Americans can’t afford to become disabled


The National Bureau of Economic Research:


50% Americans said they “certainly would not” or “probably would not” be able to come up with $2,000 in the event of an unanticipated event, such as an unexpected medical bill.  


The majority said they would have to rely on more than one method to come up with the emergency funds.


60% said they would dip into savings


34% said they would have to ask family and friends for help


29% said they would have to resort to credit cards, a home equity line of credit, reverse mortgage or unsecured loan

Lusardi, Annamaria, Daniel Schneider, and Peter Tufano. “Financially Fragile Households: Evidence and Implications.” The National Bureau of Economic Research. Bulletin on Aging and Health, May 2011. Web.



The medium household income in 2007 that include any working age people with disabilities in the U.S. was $38,400.

– U.S. Census Bureau, American Community Survey, 2007


70% of Working Americans

The percentage of working Americans that do not have enough savings to meet short term emergencies is over seventy percent.

National Investment Watch Survey, A.G. Edwards Inc., 2004


No Pension & No Retirement Savings

The social Security Administration found that over fifty percent of the workforce has no private pension plan and a third have no retirement savings.

– Social Security Administration, Fact Sheet 2007


$1,004 a Month

Social Security Disability Insurance pays on average $1,004 in monthly disability benefits.

-Social Security Administration, 2008


70% exposed to Disability

Seventy percent of American workers in the private sector have no long-term disability protection.

-Social Security Administration, 2007


71% of Americans

A survey conducted by the American Payroll Association found that seventy-one percent of American employees live from paycheck to paycheck.

– American Payroll Association, “Getting Paid in America” Survey, 2008


Suffering from Low Emergency Funds, new life insurance may help

A small percentage, only 40% of adult Americans have a separate emergency savings fund.

National survey commissioned by the Consumer Federation of America (CFA) and carried out by Opinion Research Corporation, February 2007


401(k) or IRA Contributions

Retirement plan contributions are not unknown or thought about by more than 35% of workers if they are not able to earn an income for a period.

-Council for Disability Awareness, 2007 Disability Survey


New life insurance hopes to bring relief for causes of disability



90% of disabilities are caused by illnesses

JHA Disability Fact Book, 2008 Edition


Work Related Disabilities

Over 85% of disabling accidents and illnesses are not work related

National Safety Council®, Injury Facts® 2008 Ed


Cancer and Heart Disease

Most long-term absences are actually due to illnesses, such as cancer and heart disease. However, many people think that disabilities are typically caused by freak accidents
Life and Health Insurance Foundation for Education November, 2005



Disabilities of Men and Women

Disabilities due to pregnancy in insured women between the ages of 30-39 (mostly complications of pregnancy) are the most prominent disability claim type. Insured men and women in their prime working years between the ages of 30-59, the medical conditions causing the most disabilities are cardiovascular problems, musculoskeletal conditions and cancer.
Millman, sponsored by Life and Health Insurance Foundation for Education (LIFE), “The Real Risk of Disability in the United States”, 2007


Disability from Stroke

The leading cause of long term disability is stroke. 

Centers for Disease Control and Prevention, 2007


2 Years

The average length of time for long term disability absence is two years.

Commissioner’s individual disability table A


Chances of disability compared to other risk


Chance of missing at least 90 days of work due to disability is just under 1 and 3.

America’s Health Insurance Plans (AHIP). Baby boomer Awareness of Disability Risk Study (2008)


Compared to other risk.                         

Chance of using your homeowners insurance is 1 in 20.

International Organization for Standardization (ISO). Homeowners insurance Losses 2002-2006. (2008)


Chance of using your auto insurance is 1 in 15.

Highway Loss Data Institute. Coalition Coverage Insurance Losses in Years Since Introduction, 2004-2006 (2008)


Other disability figures.

United States Census Bureau: Over 51 million Americans are classified as disabled. (Largest Minority Group In The U.S.)

American With Disabilities 2002. US Bureau of the Census May 2006


A disabling Injury occurs every two seconds.



Accelerated Living Benefits: **

• Provides money in the event of a terminal, chronic or critical illness to help pay for nursing home care, home health care, adult day care, medical procedures, drug therapies, household expenses and other quality of life expenditures. Traditional Mortgage insurance plans typically do not provide these types of living benefits.



Benefits received from exercising an Accelerated Benefits Rider may be used for any purpose and are not limited to any disability, critical illness, critical injury, chronic illness and terminal illness-related expenses.





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