Growing your roots in Disability Insurance and Income Protection Planning
Why Income Protection Matters
Understanding the real risks and why protecting your income matters.
Chances of Disability
25% chance of becoming disabled before retirement
1 in 8 workers disabled for 5+ years during their working careers
Could You Replace Your Income?
50% of Americans couldn’t cover bills if income stopped
57% of Americans have less than 6 months of emergency savings
Your Current Coverage
60% of income replaced by employer LTD only.
$5,000 monthly cap leaves a major gap
Would Disability Insurance Make Sense for You?
If any of these apply to you or your family, DI may be an essential part of your financial plan.
You rely on your income to support your family
You have high fixed monthly expenses
You earn bonuses or commissions not protected by group DI
You want tax-advantaged income protection
Common Myths About Disability Insurance
Many people underestimate their risk or assume they’re already covered. These quick myths and facts help clarify how disability really affects income.
Myth:
“Most disabilities happen because of accidents.”
Reality:
In reality, only about 11% of disability claims come from accidents. Roughly 89% of claims are caused by illnesses such as musculoskeletal issues, cancer, and mental health conditions.
Myth:
“My employer’s disability plan will fully protect my income.”
Reality:
Many group long-term disability (LTD) plans replace around 60% of base salary and often cap the benefit at a fixed amount (for example, $5,000 per month).
Bonuses, commissions, and other income may not be covered—leaving a gap in your monthly cash flow.
Myth:
“The chance of me becoming disabled is so small, I don’t need coverage.”
Reality:
An individual entering the workforce today has about a 25% chance of becoming disabled before retirement.
Many workers will experience a disability lasting five years or more at some point in their career.
Myth:
“If something happens, I can use savings or investments to get by.”
Reality:
In surveys, 57% of Americans say they only have enough savings to cover six months or less of bills if their income stopped.
A long-term disability can last years, quickly depleting savings meant for retirement or other goals.
If any of these myths sound familiar, we can help review your current coverage and identify any gaps.
Causes of Disabilities
It is not uncommon for people to assume that most disabilities are the result of accidents. In reality, the majority of disabilities people suffer are due to various forms of illness.
Your Employer DI Coverage — and How It Leaves Gaps
Many people know the group long-term disability (GLTD) benefits made available to them in the form of a company’s employee benefits package will pay a portion of their income should they become disabled. Identifying the actual portion of income covered by GLTD benefits, and which benefits are taxable is essential in identifying the “gap” in your disability income coverage.
Disability Carriers
Because a comprehensive financial plan should include protection for your client’s largest asset — the ability to learn — we partner with select disability insurance carriers to provide the most appropriate solution for your client’s needs and budget!
