Few high-income U.S. shoppers have a lot safety towards accidents or sicknesses that would value them the flexibility to earn a dwelling.
Solely 3.1 million U.S. adults had particular person incapacity insurance coverage in 2023, in response to new knowledge from Gen Re.
The quantity with their very own protection was the identical as in 2022. The variety of individuals with new insurance policies elevated 4%, to 275,235, however coverage lapses offset new coverage gross sales.
What it means: About 30 million U.S. adults reside in households with month-to-month revenue over $17,000.
The Social Safety Incapacity Insurance coverage program has a 2024 month-to-month profit restrict of $3,822, in response to Evans Incapacity.
Solely about half of U.S. employers provide group incapacity advantages applications, and the utmost month-to-month profit at these is lower than $10,000 monthly.
The figures recommend that about 90% of high-income shoppers who come to a typical monetary skilled may have no incapacity insurance coverage or insurance coverage that’s too skimpy to switch 60% of the shopper’s pre-disability revenue.
If the group incapacity protection lacks a portability provision, and a struggling shopper stops working earlier than making use of for group incapacity, the shopper might lose entry to the group incapacity advantages.
Gen Re: Gen Re is a reinsurer, or insurance coverage firm for insurers, that protects incapacity insurance coverage issuers towards catastrophic claims and massive surges in claims.