Few high-income U.S. shoppers have a lot safety in opposition to accidents or diseases that might value them the power to earn a residing.
Solely 3.1 million U.S. adults had particular person incapacity insurance coverage in 2023, in line with new data 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 stay 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 line with Evans Disability.
Solely about half of U.S. employers supply group incapacity advantages packages, and the utmost month-to-month profit at these is lower than $10,000 per thirty days.
The figures recommend that about 90% of high-income shoppers who come to a typical monetary skilled can have no incapacity insurance coverage or insurance coverage that’s too skimpy to interchange 60% of the consumer’s pre-disability revenue.
If the group incapacity protection lacks a portability provision, and a struggling consumer stops working earlier than making use of for group incapacity, the consumer could 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 in opposition to catastrophic claims and large surges in claims.
