Millennials Don’t Understand DI Insurance

It’s up to you to educate them and help them become financially prepared.

By Ayo Mseka

Conditions caused by illness, such as arthritis, back pain and cancer, account for 90 percent of disability claims.

Despite the fact that financial wellness impacts overall health1, one in three working Americans doesn’t have adequate disability income (DI) insurance2 to provide a source of income when they can’t work because of an illness or an injury.

Results from a survey3 conducted by Anthem, Inc. reveals confusion particularly among Millennials, about the benefit of DI insurance and the role it plays in protecting one’s financial wellness.

“No matter your age, losing a primary income source can lead to emotional stress and strain on top of experiencing an illness or injury,” said Greg Poulakos, president of Anthem Life. “While company wellness programs often focus on physical goals and productivity, education around disability insurance and overall financial well-being should also be incorporated.”

Primary causes of disability claims

Conditions caused by illness, such as arthritis, back pain and cancer, account for 90 percent of disability claims 4 . (And one of the most common reasons for short-term disability is pregnancy5.) The fact is that one in four of today’s 20-year-olds will experience a disability before they retire2 . However, only one-third of Millennials (those between the ages of 18-34) think short-term DI insurance is important to their financial well-being, and over half say they are not very familiar with long-term and short-term DI insurance3

An integrated disability and health care solution increases productivity. Twenty-four percent of short-term disability claimants return to work early 6 . It can also help streamline administration and increase efficiencies for employers, which can lead to significant savings—up to nine percent lower disability costs year over year7 and 25 percent in medical claim savings 6 .