Average annual premiums for long term disability insurance increased 20% year-on-year in 2021, according to Breeze. Disability insurance pays a portion of a person's monthly income if they are injured or ill and can't go to work. Unlike workers' comp, the ailment does not have to occur on the job, Breeze explained.
The main driver of this premium growth was a 23% increase in the average monthly amount in benefits paid, Breeze reported. The jump in benefits paid was due, in part, to consumers seeking more coverage because of COVID-19.
Additionally, age plays a major factor in long term disability. For the 18-24 age group, the average annual premium in 2021 was $451. For those aged 45-54, the average annual cost was $1,800, Breeze found.
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Steve Hallo
Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]
