Many baby boomers incorrectly believe they have disability income protection, according to a new survey conducted by Harris Interactive(R) on behalf of America’s Health Insurance Plans (AHIP). Most say that disability insurance is important to protect their income, but nearly half say they do not have any disability income protection.

The survey assessed baby boomers’ perceptions about the need for disability income protection. Most baby boomers (56 percent) say that disability income insurance is important to protect their income should the primary wage earner in their household become disabled and unable to work for an extended period of time. Only nineteen percent said that disability insurance was not at all important.

However, nearly half of baby boomers acknowledge they do not have any form of disability income protection. According to the survey, only 52 percent of baby boomers say they have either short-term or long-term disability insurance.

Baby boomers were also asked what their primary source of financial assistance would be if they became disabled and were unable to work. A quarter (25 percent) said they would rely on their personal savings. Others said they would rely on Social Security Disability Insurance (15 percent), private disability insurance (13 percent), or Workers’ Compensation (13 percent). Previous surveys have found that baby boomers overestimate the coverage available through public disability programs and most are not financially prepared to weather even a short term disability.

Here are the FACTS about Disabilities (they might SHOCK you!)

• Odds of a disability are nearly 3 times greater than death between the ages of 25-65
• At age 37, the odds of becoming disabled are 3-1/2 times higher than that of death
• 1 in 3 Americans age 35 to 65 will suffer a disability lasting at least 90 days
• 48% of all home mortgage foreclosures are due to a disability – only 3% are due to a death of the breadwinner
• 1 in 4 families that filed for bankruptcy protection identified an illness or injury in their family as the major reason for the bankruptcy

Despite all this, amazingly, 82 percent of Americans have little or no disability coverage.

The TRUTH About Workers Comp and Social Security Disability:

• Almost half of Social Security Disability Insurance claims filed from 1992 through 2001 were denied
• The average monthly Social Security Disability benefit received in 2003 was only $862
• Nearly 60% of injuries happen off the job, which means they are not covered by Workers’ Compensation