An Advisors' Guide to Excess & Surplus Disability Insurance

5 Top Causes Behind Long Term Disability Claims

Posted Thu, Dec, 13th, 2018
By Exceptional Risk Advisors

The Council for Disability Awareness's annual report has identified continuing or emerging trends of long term disability insurance claims since 2005.  Below are the top 5 new causes for long-term disability claims as reported by The Council for Disability Awareness.  As a bonus, we've included a claim testimonial from our firm to help illustrate. 

1. Musculoskeletal/Connective Tissue:  28.5% of new long-term disability claims were due to some form of musculoskeletal or connective tissue disorders such as back pain, degenerated disk, arthritis, osteoporosis and rheumatism.  As the baby boomer generation continue to work past age 65, the volume of claims in this category will most likely increase. 

2. Cancer and Neoplasms: Coming in a distant second, 14.6% of new long-term disability claims were due to cancer and neoplasms.  Specific cancer types include breast cancer, prostate cancer, lymphoma, Hodgkin's disease, and leukemia.

3. Injuries and Poisoning:  10.4% of new long term claims include both injuries and poising.  However, perceived as the leading cause of disability claims,  injuries represent less than five percent of diagnoses.  It should be noted that one out of four car accidents are a result of texting while driving, which some experts believe to be more dangerous than driving while intoxicated. 

4. Mental Disorders: Disabling mental disorders decreased from 2011 to 2012, reversing a two-year trend. It ranks #4 in the top causes of new long term disability claims at 8.9%.

5. Cardiovascular/Circulatory: Even though heart disease is the number one cause of death in the United States, it ranks fifth at 8.2% of all new long-term disability claims. This could be in part to Americans taking preventative measures to avoid heart disease such as taking prescription drugs to control cholesterol and stop smoking. 

When claims happen, we at Exceptional Risk Advisors pride ourselves on making the process as smooth as possible during this difficult time.  Download a claim testimonial to read about a hedge fund that obtained Key Person Disability coverage for their top three executives and what occurred after one suffered a stroke.  

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