New research from MetLife finds three out of five individuals out of work for at least six months due to disability did not have disability income protection. For those who did have coverage, only about one-third of their income was protected.

The new MetLife Study of the Emotional and Financial Impact of Disability reinforces the importance of determining protection needs and take advantage of resources available, such as financial advisors, employers or online tools.

For those who incurred a disability at least a year ago, MetLife states less than 20 percent actually felt they had completely recovered financially.

"People often feel invincible and tend to drastically underestimate the possibility of experiencing a disabling accident or illness. Although the reality was different, more than half of study participants - even those without any disability income protection - said they felt financially prepared prior to their disability," said Lynn Dumais, vice president, Individual Disability Income for MetLife, in a press release. "Now is the time to shore up your personal financial safety net which, in turn, can also have a positive impact on emotionally weathering a serious illness or injury."

Experts at MetLife say while experiencing a disabling illness or injury negatively impacted the emotional and financial well-being of all study participants, having some income protection in place helped blunt the severity of these effects. Adequacy of coverage, however, makes the most significant difference.

Emotional Impacts:

90 percent of study participants who said they had inadequate coverage felt that the disability had a major or devastating effect on their emotional lives, compared to 63 percent of those who felt their coverage was at least somewhat adequate.
54 percent of those with inadequate coverage felt that their disability had a major or devastating impact on their relationships, compared to 37 percent of those whose coverage was felt to be at least somewhat adequate.
77 percent of those with inadequate coverage experienced feelings of depression and anxiety during their disability, compared to 58 percent of those whose coverage was at least somewhat adequate.

Financial Impacts:

88 percent of those with inadequate coverage said the disability had a major or devastating impact on their feelings of financial security, compared to 61 percent of those who felt that their coverage was at least somewhat adequate.
77 percent of those who felt that their coverage was inadequate reported withdrawing money from savings, investments or retirement accounts, compared to 51 percent of those who felt coverage was at least somewhat adequate.
50 percent of those with inadequate coverage said they borrowed money from friends or family as a result of the disability, contrasted to 24 percent of those whose coverage was at least somewhat adequate.
62 percent of those with inadequate coverage said they are currently living paycheck-to-paycheck, compared to 37 percent of those whose coverage was at least somewhat adequate.

"These findings underscore how the emotional and financial effects of a disability may last long after a person has recovered physically," adds Dumais. "It is important to take advantage of resources such as financial advisors, your employer, as well as online tools, to determine your protection needs."

Returning to Work

The MetLife study found that, in general, people with disability income protection coverage return to work three months sooner than the people without coverage. More significantly, the study found that they were also about twice as likely to return to the same employer in the same function than those without coverage.

About the Study

The MetLife Study of the Emotional and Financial Impact of Disability was conducted in March 2010 by Zeldis Research Associates, and surveyed 300 people, ages 25 to 55, who had experienced a non-workers' compensation/ non-pregnancy disability that prevented them from working for six months or more but have since returned to work. The disability they experienced occurred in the past 10 years.

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MetLife: Most jobless and disabled didn&#039;t have income protection

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MetLife: Most jobless and disabled didn't have income protection