Once disabled, many people are never able to work again. When in reality, many people believe that any disability will be temporary. Because of a disabling illness or injury, at least 1.5 million Americans are no longer able to work.
The Society of Actuaries 1987 Group Long Term Disability Basic Table show that once a person has experienced a disability that lasts at least 90 days, that person may remain disabled for a longer time. Any extended disability can have a devastating impact, both financially and emotionally, without proper planning. During some point in their careers, workers at age 35 face almost a 1 in 4 chance of suffering a disability lasting 90 days or longer. The ability to earn a living is our most important asset for most of us and it takes just some simple math to realize just how important.
If a person becomes disabled at age 35, earning $25,000 a year and remains unable to work till his retirement age of 65, he will lose $750,000 in lifetime income. If he becomes disabled at 45, he will lose $500,000. If he is earning $50,000 a year, the loss will be $1,500,000. The loss of income is significant if you become disabled, no matter what your age or earning level.