1 in 3 Single Women Are Taking This Unnecessary Financial Risk
Introduction
Women already experience a disadvantage in the workplace thanks to the gender pay gap. But some female workers may also be less prepared financially than men when it comes to disability insurance. One in four American female workers will experience a disability before reaching retirement according to a survey by the Council for Disability Awareness. Disability insurance is a way to replace your income if an illness or injury leaves you unable to work, and yet most women — especially single women — aren’t prepared.
Image Description: A concerned single woman reviewing her insurance options.
Survey Findings
According to the survey, one in three unmarried female workers are underinsured for disabilities. More than half of single working women between the ages of 20 and 65 say they have no disability insurance at all.
“We were surprised to see how few single women have disability insurance or other forms of income protection or thought to get it,” said Carol Harnett, president of the Council for Disability Awareness, in a statement. “If you’re a single woman and don’t have disability insurance through your employer or private insurance, you need to put an income protection plan in place.”
Image Description: Infographic showing the percentage of single women without disability insurance.
The Importance of Disability Insurance
Disability insurance is crucial because it replaces a portion of your income if you become unable to work due to illness or injury. This protection can prevent financial hardship and provide peace of mind. Without it, many single women may find themselves in a precarious financial situation if they are unable to work for an extended period.
More than half of working Americans who responded to an American Council of Life Insurers survey don’t have disability insurance other than the basic coverage via Social Security. What’s more, 40% of Americans say they can’t cover an unexpected $400 bill according to the Federal Reserve. The financial cost of a disability is typically much more than that because it can stop you from earning an income.
Image Description: Infographic explaining the importance of disability insurance.
Steps to Finding Affordable Coverage
Shop Around
Compare prices across different carriers to find the best rate for you. Not all policies are created equal, so it's important to understand what each one covers and how much it will cost.
Don’t Always Buy the Maximum
Consider how much coverage you’ll actually need. You may not have to pay the maximum benefit amount or maximum benefit period. Sometimes, opting for a slightly lower coverage amount can significantly reduce your premiums.
Lengthen the Elimination Period
The elimination period is how long you have to wait before the insurer pays out benefits. A 90-day period is most common, but extending it can lower your overall premium.
Image Description: Infographic showing tips for finding affordable disability insurance coverage.
Conclusion
Single women, in particular, should consider disability insurance to protect their income and financial stability. By shopping around, choosing appropriate coverage levels, and understanding the options, they can find affordable policies that provide necessary protection.
Image Description: A single woman confidently reviewing her disability insurance policy.
