Carol Westlake
Robert Zirkelbach

As millions of baby boomers juggle demands of career and family, most are financially unprepared for a disabling injury or illness that forces them out of work for an extended period, a new survey shows.

“The boomers are getting to an age where they underestimate their risk, they are not prepared, they have a lot of debt and the coverage they have is not sufficient to cover their needs, said Robert Zirkelbach, spokesman for America’s Health Insurance Plans that commissioned the survey.

The boomers, born between 1946 and 1964, number about 76 million in the United States.

The survey of 2,853 adults included 828 between the ages of 44 and 62. Key findings include:

* About one-third of baby boomers surveyed think the chances are about 5 percent or less that a typical working adult will become disabled due to injury or illness that will cause missing three or more months of work.

However, Social Security Administration data shows there is a 30 percent chance that a worker who is now 20 will suffer such an injury or illness during his working lifetime.

* The survey found that 44 percent of baby boomers say they have long-term disability insurance provided through their employer or purchased individually.

In reality, only 30 percent of workers in private industry have long-term disability insurance coverage, according to the U.S. Department of Labor.

* Baby boomers said they would be forced to tap into retirement savings if the primary wage earner became disabled and unable to work. Seventeen percent said they had no retirement savings.

* Significant debt burdens would mean hardship for most baby boomers if they lost their regular income. More than half have more than $5,000 in nonmortgage debt, 25 percent have more than $20,000 in debt and 9 percent have more than $50,000 of nonmortgage-related debt.

Carol Westlake, executive director of the nonprofit Tennessee Disability Coalition said most people underestimate the danger of inadequate disability coverage.

“No one thinks it will happen to them, but it is risky not to have disability insurance,” she said. “It can be financially devastating for individuals and families — the onset of a catastrophic illness can bankrupt people.”

The costs of prolonged or permanent disability can be so great that some couples divorce so that only one must declare bankruptcy, she said.

A baby boomer herself, Ms. Westlake said she is more concerned about having disability and long-term care insurance than having life insurance.

Advocates for the insurance industry and for the disabled agree that while having life insurance is important, planning for living rather than dying is more important.

“Too many Americans are just one major illness or injury away from financial ruin,’’ said Karin Miller, communications director for AARP in Tennessee.

“People may think they’re adequately insured and are putting enough aside for retirement, but if something terrible happens and they have to use up their savings to cover health care costs, then what do they do?”