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.