How to Help Your Employees Protect Their Futures – Facts About Disabilities
By Allstate Benefits
Last updated: July 2025
Disabilities affect millions of Americans. According to the Centers for Disease Control (CDC), more than one in four Americans live with some type of disability.¹ That number increases to more than 30% for Americans over the age of 65 and 50% for Americans over the age of 75.² It's not just older people who are at risk: it's estimated that one in four of today's 20-year-olds will become disabled before reaching age 67.³
Despite the prevalence of disabilities in the U.S., there are still many misconceptions about disabilities and the people who live with them. We've listed some of the most common questions and concerns that employees and employers alike have asked about disability. We hope this information helps to better outline the steps that employers can take to support their employees in the event of an unexpected disability.
What is a disability?
According to the CDC, a disability is any condition of the body or mind that makes it more difficult for a person to perform certain activities or interact with the world around them. Some disabilities are observable while some are non-visible.
What is a non-visible disability?
A non-visible disability, sometimes referred to as an “NVD” or “invisible disability,” is a condition or limitation that may not be immediately apparent—for example, a visual or cognitive impairment or rheumatoid arthritis. There has traditionally been a stigma against NVDs since they are not immediately apparent, but they can present just as many challenges as an observable disability.
How can employers support employees who become disabled?
Employers who wish to protect their workforce should consider offering disability insurance in their employee benefits package. Disability insurance policies can provide employees with an extra layer of financial protection if they suffer a disability that affects their ability to work.
What is disability insurance?
Disability insurance pays a monthly benefit if an enrollee becomes disabled and can’t work. There are two types of disability insurance:
- Short-term disability insurance can help enrollees pay their bills if they can’t work for a relatively short period of time due to pregnancy, depression, musculoskeletal issues or any other short-term condition.
- Long-term disability insurance can help enrollees pay their bills if they can’t work for a longer period due to a prolonged illness or injury. Such long-term disabilities can dramatically reduce an employee’s income and retirement savings, but a long-term disability insurance policy can help offset this loss of income at a time when an employee needs it the most.
How does disability insurance work?
Disability insurance provides a cash benefit if an enrollee experiences a qualifying event. While there are differences between plans and carriers, the general order of the steps that enrollees must follow are listed below.
- File a claim. An enrollee who wishes to file a claim must first determine if they meet the criteria laid out by their specific plan. These details are available through their insurance carrier’s member portal or other materials provided upon enrollment in the policy. If they meet the criteria specified by their insurance carrier, they can then file a claim.
- Receive a medical examination. Enrollees who file a claim typically need to undergo an evaluation from a medical professional to prove that their disability meets the eligibility requirements outlined in their policy.
- Benefit payout. Once the enrollee is determined to be eligible for benefits, they will receive a financial payout. The amount of this payout is typically based on their previous earnings on the job. Payout amounts can differ depending on the terms of their plan or other guidelines laid out by their carrier.
By offering your employees access to disability insurance, you’re providing them with comprehensive protection against unexpected financial difficulties. You’re also boosting employee satisfaction and loyalty, which can help you attract and retain the best talent.