consumer/page_9

1. Overview
2. Methodology & Highlights
3. Beliefs About Disability
4. Overall Odds of Disability
5. Causes of Disability

6. Protection Against Disability
7. Duration of Disability
8. Preparation for Disability
9. Income Sources in Event of Disability
10. Conclusion

When asked what source they’d likely tap in the event they became disabled and couldn’t work, 40% of employees said they would rely on employer-funded sick/vacation leave.

Sick leave and vacation are typically short-term solutions that run out in a matter of weeks.

Other perceived top sources of income included disability insurance payments, and a spouse’s or partner’s income and debt. But most responses seemed “off the cuff” and many of the sources cited are probably not sufficient to cover living expenses.

What’s also interesting to note is that Gen Y respondents were more likely than other groups to consider tapping into their retirement savings – not likely to be a significant asset at this stage in their careers.

Other top answers employees gave also seem to reveal a lack of understanding about what income sources could actually pay the bills in the event they became disabled.

• 36% cited a partner’s income as a source of income. But if two incomes are needed to meet expenses, simply relying on just one most likely wouldn’t be enough, at least for a time. In addition, many spouses take on a caregiver role and work less when the other becomes disabled.
• 34% said they would take on more debt. But there’s little chance of qualifying for a loan when someone is disabled and unable to earn an income to pay the money back. While credit card debt was also cited as an option, it is notoriously expensive, and would be difficult to pay off because, again, there would be no income to make required payments.