CARMEL, Ind., May 7, 2013 /PRNewswire/ -- An overwhelming majority (90%) of our nation's middle-income Americans say they are not financially prepared for a critical illness diagnosis, according to a new study released by Washington National Institute for Wellness Solutions (IWS).
The study, Middle-Income America's Perspectives on Critical Illness and Financial Security, which surveyed 1,001 Americans ages 30 to 66 with an annual household income of between $35,000 and $99,999, found that only 1-in-10 feels strongly confident they have enough savings to cover family emergencies and handle the financial implications of a critical illness.
Middle-income Americans today face a significant risk of being diagnosed with one or more critical illnesses—including cancer, heart disease, stroke and Alzheimer's disease. For the majority, a critical illness diagnosis can be life-changing both financially and personally.
Level of personal savingsIf diagnosed with a critical illness, most middle-income Americans say they would be forced to draw on savings to pay for out-of-pocket expenses not covered by insurance. But according to the study, many have little, if any, savings to fall back on:
- 75% have less than $20,000 in savings
- 50% have less than $2,000 in savings
- 25% have no current savings