New research from LIMRA and Life Happens, almost a quarter of Americans say they would dip into their retirement savings if they experienced a disability. But between tax penalties and loss of the opportunity for compounding interest, an early withdrawal can do more harm than good.
Respondents said that retirement planning was their top reason for getting disability insurance, but only 14% of Americans have individual disability insurance—down from a record-high 31% in 2012. Other factors include knowing someone affected by not having disability insurance, entering the workforce, getting married, having a child, and starting a business.
With disability insurance, consumers can help protect their retirement savings to ensure financial security in retirement. Disability insurance awareness month is the perfect time to talk to your clients about how DI can help secure their financial futures.
About LIMRA®
Serving the industry since 1916, LIMRA helps to advance the financial services industry by empowering more than 700 financial services companies worldwide with knowledge, insights, connections, and solutions. Visit LIMRA at www.limra.com.
About Life Happens
Life Happens is a nonprofit organization dedicated to helping consumers take personal financial responsibility through the ownership of life insurance and related products. The organization does not endorse any product, company or insurance advisor. Since its inception in 1994, Life Happens has provided the highest quality, independent and objective information for people seeking help with their insurance buying decisions. To learn more, visit www.lifehappens.org.
Media Contacts
Catherine Theroux, (860) 285-7787, ctheroux@limra.com
Brooke Lacey, (860) 293-3920, blacey@limra.com