Boomers fuel explosion of disability insurance quotes
By Steve Savant
Ash Brokerage Corporation
Baby boomers. They’re the largest generation in American history. They gave us rock-n-roll, Woodstock and the anti-war movement. They changed the landscape of the workplace with millions of women entering the job market. And today, as more boomers enter retirement, they’re fueling the explosion of yet another movement — the disability movement.
Baby boomers make up the largest percentage of new disability benefits recipients, according to the Congressional Budget Office, who cites this demographic as the main source of the huge increase in disability claims and grants in recent years. The CBO says that during the approximate period the baby boomer generation entered their 50s, the share of disability benefits awarded to workers 45 years old and above rose from 67 percent to 76 percent. And according to the Council for Disability Awareness (CDA), the number of long-term disability claims is increasing every year among baby boomers in general and women in particular.
The sour economy and slow jobs recovery are also helping to swell the disability ranks. More workers are being laid off and fewer companies are hiring, and that’s sending many workers looking for other sources to replace their lost income — sources such as unemployment and disability benefits. And with the current jobs environment, returning recovering workers to productive employment is even more of a challenge.
During the coming decades, every job sector in the nation will have a growing number of baby boomers with disabilities on the payroll due to demographics and economics. The U.S. Department of Health and Human Services, Administration on Aging, estimates that 25 million more Americans over age 65 will be added to the disabled ranks in each of the first three decades of the 21st century.
And yet, even as long-term disability claims rise, research continues to show that workers underestimate their risk of disability and all too often don't think about paycheck protection. According to Allstate Financial’s “Retirement Reality Check,” aging baby boomers could be headed for a financial crisis because on average, they’ve only saved 12 percent of what they think they’ll need to meet their basic living expenses during retirement. Many of them will interrupt or delay their retirement to keeping earning a paycheck.
The message to every broker: Offer disability insurance quotes
If you've never presented disability insurance quotes, now is a good time to jump into the game. Trends in the marketplace are showing new opportunities, and developments within the DI industry are creating better support mechanisms for getting these sales.
And there’s certainly never been a better time to market to baby boomers. In fact, they represent the single most significant growth sector in paycheck protection sales. Millions of boomers entering middle age are coming into their years of greatest earnings, greatest financial responsibilities, and a growing awareness of the need to protect everything they’re working hard to build. They need disability insurance quotes from you!