Women More Likely Than Men to Be Financially Harmed by Disability

August 19, 2012

According to the U.S. Department of Health and Human Services, approximately 20 percent of American women have some form of disability. By age 65, the disability rate among women rises to nearly 50 percent.

A new study from the State Farm Center for Women and Financial Services at The American College shows that women are actually much more likely than men to develop a disability that prevents them from being able to work. In fact, in the 10-year period between 1999 and 2009, women's Social Security Disability applications grew by 72 percent, while men saw a comparatively smaller 42 percent increase.

Arthritis and rheumatism are the most common disabilities affecting American women. Heart disease, cancer, mental health issues, diabetes and nervous system disorders are also leading causes of disability.

The Financial Impact of Disability

The American College study also found that women are much more likely to experience financial distress if they become unable to work because of a disability.

Nearly half of all women in the survey reported that experiencing a disability would be "somewhat devastating" to their family's finances. Nearly a quarter worried that their cash reserves would last less than a month if they became unable to work.

Single women were more likely to be worried about financial hardship than married women, though the threat is real for both demographics. Approximately 28 percent of single women and 20 percent of married women responded that developing a disability would be "totally devastating" to their financial well-being.

Recovering Disability Benefits

When a disability strikes, it is important to identify all potential sources of income. While some people may be able to undertake an alternate career, others will need to rely on various forms of disability insurance.

Approximately half of all American workers are covered by some form of employer-sponsored disability insurance. In addition, most disabled workers are eligible to apply for Social Security Disability Insurance benefits. Those who aren't eligible for SSDI may qualify for Supplemental Security Income.

Recovery under either program depends on the disabled worker's ability to show that his or her condition makes it impossible to engage in gainful employment. Even though the inability to work can seem obvious to the disabled person, it is often difficult to prove without the help of an experienced advocate. For that reason, all disabled workers are encouraged to consult with a disability attorney before submitting an application for benefits.

Article provided by Wolf and Brown, L.L.C.
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