Long-Term Disability Claims – the Leading Causes

Long-Term Disability Claims – the Leading Causes

In the 2013 Long Term Disability Claims Review, the Council for Disability Awareness (CDA), examines and reports the leading causes of long-term disability claims.  The report includes causes of new claims approved during the current year, as well as existing or ongoing disability claims that were approved in previous years.

From the report:

  • The four most  common causes of existing long-term disability claims in 2012 were diseases of the musculoskeletal system and connective tissue (30.7 percent of all existing claims), diseases of the nervous system and sense organs (14.2 percent), diseases of the circulatory system (12.1 percent) and cancer (9.0 percent).  These were also the top four causes in the previous two years.
  • Cancer increased as a cause of new disability claims in 2012.  It remains the second leading cause of new disability claims and the fourth leading cause of ongoing claims.
  • Disability claims due to disorders of the nervous system and sense organs, circulatory and respiratory systems all decreased from 2011.
  • New long-term disability claims resulting from pregnancy and childbirth increases sharply by 24 percent in 2012 following a smaller increase in 2011.  Pregnancy and childbirth caused 12.3 percent of new long-term disability claims for female wage earners in 2012, compared to 9.6 percent in 2011.
  • Disabling mental disorders decreased from 2011 to 2012, reversing a two year trend.

Here are some additional interesting findings from the study:

  • Work-related claims were minimal.  Fewer than five percent of CDA member company disability claims were work-related in each or the years spanning 2008 through 2012 (Note:  we emphasize this point to those who believe that workers compensation will cover their disabilities).
  • Claimant ages are trending higher.  Forty-three percent of the new claims approved during 2012 were for individuals younger than 50 and 57 percent went to individuals age 50 or older.  Claims for those age 50 and older, mostly driven by those age 60 and older, have been increasing as a percentage of the total, reflecting an aging working population.
  • Women make up majority of new claims, continuing a trend.  Fifty-four percent of the new disability claims approved during 2012 were for women, and 46 were for men.  The percentage of claims for women has trended up compared to men in the past three years.  Note:  this justifies the higher cost of disability insurance for women, as compared to men.

A few takeaways from the study:

  • This report contradicts the belief of many people I speak with who believe that accidents are the leading cause of disability.
  • Workers’ compensation insurance, contrary to popular belief, will only cover a very small percentage of disabilities, as most of them are not work-related.
  • Disability claims are trending in the direction of older workers.  While we have many clients over the age of fifty, some older folks I speak to about disability insurance find it difficult to justify the need.  This report clearly points to the need for coverage for those over the age of fifty.

If you are currently not covered by disability insurance through your employer or through an individual policy, I hope this article inspires you to, at least, take a look at it.  Visit ProtectYourIncome.com or call us at 866-691-0100- we’d be happy to provide you with quotes from multiple insurance companies

Original article: Long-Term Disability Claims – the Leading Causes

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via ProtectYourIncome.com » Disability Insurance Blog:

Long-Term Disability Claims – the Leading CausesPosted onJuly 11, 2013byRichard ReichIn the 2013 Long Term Disability Claims Review, the Council for Disability Awareness (CDA), examines and reports the leading causes of long-term disability claims.  The report includes causes of new claims approved during the current year, as well as existing or ongoing disability claims that were approved in previous years.From the report:The four most  common causes of existing long-term disability claims in 2012 were diseases of the musculoskeletal system and connective tissue (30.7 percent of all existing claims), diseases of the nervous system and sense organs (14.2 percent), diseases of the circulatory system (12.1 percent) and cancer (9.0 percent).  These were also the top four causes in the previous two years. Cancer increased as a …

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Long-Term Disability Claims – the Leading Causes

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