Numerous events have influenced the ongoing development of the Disability Income Insurance market in the United States. The roots of this industry can be traced to the early 19th century as our nation became more industrialized and its economy expanded.
In addition to the economic expansion, attitudes also began to shift in the general population as they advocated for new disability services from the government. The most notable change came in 1935 with the creation of Social Security within the New Deal government program expansion as a result of the Great Depression. Another notable change occurred in 1956 with the addition of Social Security Disability Income. This program implemented disability benefits for individuals who had worked before becoming disabled to the point of no longer having the ability to work at substantial levels.
Private insurance markets have also adapted to new consumer attitudes and demands. As living standards increase, this type of coverage is widely believed to be the most important. High-income professionals, heads of household, and business owners recognize the potential loss of income that would occur in the event of a disability. Additionally, consumers realize that existing governmental programs are just not enough to maintain their current living standards.
