Disability insurance is an insurance type that replaces your income in case you become disabled and unable to work.
This coverage can be a valuable financial safety net, as the average American worker only has enough savings to cover about 3 months of living expenses if they become disabled.
There are a few reasons why people may not have disability insurance.
Some people may not think they need it, while others may not be able to afford it.
However, disability insurance can be valuable as financial protection, and it’s important to consider whether you need it.
The following disability insurance statistics will provide you with insights and information you need to help you decide if this is right for you.
If you’re a marketer, these statistics will be of value for a wide range of campaigns in the industry.
Key Statistics
- More than 9.2 million people received Social Security disability benefits in December 2021.
- 5% of the workforce in America will endure a short-term disability because of an illness.
- 1 in 4 20-year-olds experience disability before their retirement.
- Over 51 million American workers have inadequate or no disability insurance.
- 40% of all applications for disability insurance benefits are declined, rated, or only approved if there’s an exclusion.
- In 2019, 19.3% of those with a disability were employed, according to the Bureau of Labor Statistics.
- 43% of workers in the private sector have access to short-term disability insurance.
- Across local and state government employees, only 27% had access to short-term disability insurance in 2022.
- 35% of employees in the private sector had access to long-term disability insurance.
- 39% of state and local government sector employees had access to long-term disability insurance.
Disability Insurance Statistics in 2025
1. More than 9.2 Million People Received Social Security Disability Benefits in December 2021.
In 2021, the Social Security Administration revealed that disability benefits were dispersed to more than 9.2 people.
The most common disabling conditions are diseases of the musculoskeletal system and connective tissue, mental disorders, and cardiovascular diseases.
Data for 2022 will be released later in 2023.
(SSA)
2. 5% of The Workforce in America Will Endure a Short-Term Disability Because of An Illness.
A short-term disability is one that lasts six months or less.
The data shows that 5% of the American workforce will experience a short-term disability because of an illness.
Without this coverage, working adults in America would have little or worse, no income.
(Disability Can Happen)
3. 1 in 4 20-Year-Olds Experience Disability Before Their Retirement.
Most people think that disability is something that happens to other people, but it can happen to anyone at any time and at any age.
Sadly, thousands of young American workers experience disabling injuries or are even killed due to traumatic events in the workplace.
Likewise, younger people can develop major medical conditions such as mental illness, cancer, and other chronic and disabling illnesses.
The risk isn’t exclusive to an age group.
(SSA 2)
4. Over 51 Million American Workers Have Inadequate or No Disability Insurance.
It’s estimated that over 51 million people in the American workforce either have inadequate or no disability insurance.
The American Council of Life Insurers revealed that 51.3 million American households have no disability insurance other than basic coverage that is provided through Social Security.
(PR Newswire)
5. 40% of All Applications for Disability Insurance Benefits Are Declined, Rated, or Only Approved if There’s an Exclusion.
Roughly 40% of all disability insurance benefit applications are declined, rated, or are only approved if there’s an exclusion.
There are many reasons people get declined for disability, and it’s not always what you think.
For instance, if you have vertigo, fatigue, a pending medical treatment, or a medical condition that is yet unidentified, your application for disability insurance is unlikely to be accepted.
(McDermott Law, LLC)
6. In 2019, 19.3% of Those with A Disability Were Employed, According to The Bureau of Labor Statistics.
In 2019, 19.3% of working adults had a disability.
This data is straight from the Bureau of Labor Statistics and the U.S. Department of Labor.
For perspective, this is out of over 134 million full-time employed adults. That 19.3% would represent over 25.8 million people.
(U.S. DOL)
7. As Of March 2022, 43% of Workers in The Private Sector Had Access to Short-Term Disability Insurance.
While 43% of American workers in the private sector had access to short-term disability insurance, there’s a disparity among regions.
For instance, 67% of workers had access to short-term disability insurance in the Northeastern region compared to only 34% of workers in the Southern region.
(BLS)
8. Across Local and State Government Employees, only 27% Had Access to Short-Term Disability Insurance in 2022.
Another disparity we see in the availability of short-term disability insurance in America is that in the state and local government sector, only 27% of workers had access to this coverage compared to 43% in the private sector.
However, 83% of state and local government employees had access to life insurance.
(BLS)
9. In 2022, 35% of Employees in The Private Sector Had Access to Long-Term Disability Insurance.
The Bureau of Labor Statistics March 2022 report stated that 35% of private sector workers had access to long-term disability insurance.
Across industry groups, they found a range of 4% (hospitality workers) to 71% (information industry) difference in workers who had access to this coverage from work.
(BLS, BLS 2)
10. 39% of State and Local Government Sector Employees Had Access to Long-Term Disability Insurance in 2022.
As for the state and local government employment sector, 39% of workers had access to long-term disability coverage in 2022.
According to the Social Security Administration, people employed by their state or local governments may or may not be covered by Social Security, depending on their own circumstances.
However, until 1991, they had no Social Security.
(BLS, SSA 3)
11. Over 375,000 American Workers Become Disabled Every Year.
Out of the 51 million working American adults without disability insurance, over 375,000 become disabled per year.
The most recent data shows that over 8 million American adults have a disability that impedes their ability to work.
(EBN)
12. 48% of Surveyed American Workers Said They Don’t Have Enough Savings to Cover Three Months if They Had an Emergency.
Becoming disabled at work is an emergency.
So, 48% of survey respondents among working Americans said they don’t have enough earmarked for an emergency, which includes becoming disabled at work.
This is an important statistic to consider.
(CNBC)
13. 67% of Americans Say They Can’t Even Cover a $400 Emergency.
Do you have $400 in a saving account, in an envelope, or set aside somewhere in case of an emergency? If so, you are the outlier these days.
Kudos for having at least something set aside for an emergency.
Most Americans, 67%, can’t cover a $400 emergency. If they also don’t have disability coverage, what will they do if they become disabled?
(Yahoo Finance)
14. 46% of All Loan and Mortgage Foreclosures Are Due to A Disability.
According to these statistics, 46% of all mortgage and home loan foreclosures occur due to disabilities.
With working Americans at risk for becoming disabled, this percentage is staggering.
That represents nearly half of all mortgages and home loans.
(Facebook USHealth Advisors-Cincinnati)
15. Being Disabled for Just a Single Year Can Completely Drain 10 Years of Savings.
Data shows that if you save 10% of your income per year and then become disabled, it will completely wipe out 10 years of savings.
Let’s say you have a net income of $50,000 per year and you set aside 10%. That would be $$50,000 over ten years at $5000 per year.
That $50,000 would be gone before a year if you become disabled and unable to work.
(Dirks Insurance Group, LLC)
16. 12% of All American Workers Have Hearing Loss.
According to the Hearing Loss Association of Americans (HLAA), roughly 48 million Americans have some level of hearing loss.
According to the EEOC hearing loss that cannot be accommodated and safe in the workplace is a disability.
The CDC says that 12% of all American workers have hearing problems.
There are specific guidelines to be eligible for disability due to hearing loss, one of which is a score of 40% for word recognition or lower in a hearing test.
(CDC, EEOC, HLAA, Texas Professional Hearing Center, Inc)
17. You Need 40 Work Credits to Qualify to Get Disability Benefits.
In order to qualify to get Social Security Disability Insurance benefits, you will have to have worked in jobs covered by Social Security, a medical condition that qualifies, and 40 work credits, of which 20 must be from the past 10 years.
There are exceptions, exclusions, and other factors in exceptional cases, but these are a few qualifiers.
(SSA 4)
18. The Most Common Reason for Disability to Be Rejected Is Due to The Condition Not Meeting Eligibility Requirements.
While paperwork errors can get a disability claim kicked back, the most common reason someone gets declined for Social Security Disability Insurance benefits is due to their medical condition or injury.
If it’s not on their list of approved injuries or medical conditions, it will likely be rejected.
(BRRLaw)
19. The Lack of Or Insufficient Proof of Disability Will Cause a Rejection of Benefits.
All claims submitted for disability benefits must be accompanied by written proof and medical evidence.
Accepted forms of proof include things like medical records or chart notes, lab tests, MRIs, x-rays, etc.
You must also prove that you are currently under the care of a medical professional (medical doctor, psychologist, psychiatrist, etc.).
(BRRLaw)
20. An Estimated 90% of All Long-Term Disabilities Aren’t Work Related.
Most people consider disability to occur in the workplace, but that’s not always the case.
While some medical conditions can be proved to be work related, most are not.
In fact, an estimated 90% of all long-term disabilities are due to medical issues like heart disease, cancer, or arthritis.
(Guardian Life)
FAQs
What Is Disability Insurance?
Disability insurance is a type of insurance that provides income replacement if you become disabled and unable to work.
It can be a valuable financial safety net, as the average American worker only has enough savings to cover about 3 months of living expenses if they become disabled.
What Are the Two Most Common Types of Disability Insurance?
The two most common types of disability insurance are short-term disability insurance (STD) and long-term disability insurance (LTD).
STD insurance typically covers you for up to 6 months, while LTD insurance can cover you for a longer period, such as 2 years or even longer.
How Much Does Disability Insurance Cost?
The cost of disability insurance depends on things like your health, age, occupation, and the amount of coverage you want.
In general, LTD insurance is more expensive than STD insurance.
What Are the Eligibility Requirements for Disability Insurance?
The eligibility requirements for disability insurance vary depending on the policy.
In general, you must be unable to work due to a medical condition that is expected to last for at least a certain period, such as 12 months or 2 years.
How Do I Apply for Disability Insurance?
To apply for disability insurance, you will need to provide information about your medical condition, your employment history, and your financial situation.
You may also need to provide medical documentation from your doctor.
How Long Does It Take to Get Disability Insurance Benefits?
How long a person waits depends on disability benefits depends on the insurance provider and policy coverage.
It’s common to take several weeks or even months to get approved for benefits.
Conclusion
Disability insurance can offer useful financial protection in the event you are disabled by an illness or injury.
By understanding the statistics and trends in disability insurance, you can make an informed decision about whether or not you need coverage.
If you do decide to purchase disability insurance, it’s important to compare policies and shop around for the best rates and policy coverage options.
You also need to ensure that you understand the terms of your policy so that you know your coverage, limits, etc.
Moreover, when you’re considering purchasing disability insurance, it’s important to weigh the pros and cons carefully and thoroughly.
Disability insurance can be a valuable financial safety net, but it comes at a cost.
If you have questions or concerns about disability insurance, it’s wise to talk to a financial advisor.
They can help you assess your individual needs and recommend the best type of coverage for you.
We hope you have found value from the disability insurance statistics in this article.