I have heard this phrase many times when broaching the subject of disability insurance with a client.  I always pull out a chart that shows the leading causes of disabilities.  My clients are always surprised to see that accidents are not at the top of the list of disability causes.  And, not surprisingly, the number of accident-related disabilities is dropping.

According to the 2010 CDA (Council for Disability Awareness) Long-Term Disability Claims Review, accident-related claims dropped rather significantly as a cause of new disability claims from 2008 to 2009.  This may be related to lifestyle changes, possibly driven by the economy.

Musculoskeletal/connective tissue disorders continue to rank as the leading cause of disability, according to the study.  This category includes claims caused by neck and back pain; joint, muscle and tendon disorders; foot, ankle and hand disorders; etc.

Cancer is the second leading cause of new claims but is the fourth leading cause of existing claims.

Cardiovascular/circulatory problems have increased slightly in 2009 as a cause of new claims after three years of declines, and are the third leading cause of new and existing disability claims.  Examples in this category include claims caused by heart and circulatory disorders, strokes, etc.

So, while you should protect your income from disabling accidents, there are other causes of disability you should be protected from.

In their recent survey of member companies, the Council for Disability Awareness (CDA) posted some interesting findings regarding the impact of the economic downturn on disability insurance.  Here are some of the findings from their survey:

• $8.1 billion in long-term disability insurance claim payments was paid to disabled individuals by CDA Member companies in 2009, representing a 2.9% increase over 2008.
• Impact of the economic downturn on disability claims:  Most reporting companies suggest they have observed little evidence that the recession has broadly impacted claims in any significant way.  Most companies report little change in claim incidence or termination rates.
• Impact of the economic downturn on insured lives:  Member companies have reported insured lives declined by 2.2% from 2008 to 2009, reflecting job losses and layoffs in the broader economy and 1.2% fewer employers providing group long-term disability programs in 2009.

• Impact of the economic downturn on worker psyche:  The economic downturn has had a prolonged effect on U.S. workers.  Swollen unemployment rolls and media coverage of out-of-work Americans has helped raise awareness of the importance of every worker’s income.  Wage earners are holding onto jobs if they can, and savings rates increased in 2009 to over 4% for the first time in over a decade.  A looming sense of economic vulnerability has elevated the importance of taking responsibility for planning for personal financial security. Eroded retirement accounts, continued economic volatility, news of home foreclosures and a stubbornly high unemployment rate have raised American workers’ awareness of financial risk and made planning for an income-limiting disability more important than ever.

• About 100 million workers have no private disability insurance.

I have to admit that I don’t get soccer.  I grew up on the East Coast of the U.S. and, when I was in school, soccer is “what all the other countries played.”  Now that I live on the West Coast, I am immersed in the melting pot of World Cup Fever.  In my gym, whenever I pass a TV, a game is being played and the score is usually 0-0 or 1-1.  When I come back a half hour later, there’s been no change.

Having just gone through the NBA post-season (with my Lakers winning the finals, thank you), I’m used to watching a much higher-scoring, higher-paced game.  I compare the few minutes of soccer I have watched with the last 10 minutes of game 7 against the Boston Celtics and I wonder how anyone can get excited about a soccer match, or game, or whatever you call it.

While watching, however, I kept wondering if any of these players have long-term disability insurance (no surprise there, since that’s what I do for a living).  Thankfully, there is some very specific disability insurance available for athletes.

The coverage is quite different than policies sold to “normal” occupations.  One of the benefits available to athletes that you wouldn’t find for an accountant, for instance, is a “Loss of Endorsements” benefit.  Another available benefit would cover agents and managers during the time of disability, should the athlete need to continue utilizing their services.

So, while I can’t get too excited about watching these low-scoring matches, I can get excited about working with these excellent athletes to ensure that their incomes are protected should they become  injured while not scoring.

My apologies to all you avid soccer fans who are enjoying the World Cup.  I’m sure there’s something you see that I don’t.  Maybe by next World Cup I’ll be converted, but only if they ban those darn Vuvuzelas from the stadium.  Don’t get me started on those!!

I have posted several times about the pitfalls of relying on our Social Security system for disability insurance.  I would like to tell you that it’s getting better, but I wouldn’t be telling the truth.

The recently-released 2010 CDA (Council for Disability Awareness) Long-Term Disability Claims Review suggests that, while applications for benefits rose 21.4% in 2009 from the previous year (also a record rise from 2007 levels), the SSDI claim approval rate continues to decline.

The SSDI percentage approval rate for applications has been trending downward since the late 90’s.  Only 35% of workers applying for SSDI disability claim payments in 2009 were approved; 10 years ago, the approval rate for workers applying for disability was 52%.

If those statistics don’t get you thinking about looking into a quality long term disability income policy, here are a few more – 56% of SSDI recipients received less than $1,000 monthly; 84% of SSDI recipients received less than $1,500 monthly (both figures from 2008).

The safety net is fraying all over.  If you depend on it to provide security for you and your family, I’m afraid you will only find disappointment at a time when you don’t need any more bad news.  Protect yourself and your family with a disability insurance policy from a top-rated company.  You’ll be a lot safer if you do.