NAIFA is pleased to join our members and industry partners, including Life Happens, to commemorate May as Disability Insurance Awareness Month (DIAM). Disability insurance is an essential part of a solid financial plan and DIAM is a great opportunity to start educating your clients and prospects about the importance of disability insurance coverage. 

Many Americans would say their biggest asset is their home or car, but in fact, it’s their ability to work and earn an income. One in four Americans will experience a disability during their working life and 49% of Americans say they would struggle financially within 6 months if they experienced a disability and were unable to work. However, only 14% of American consumers own individual disability insurance coverage. There are many factors leading to this, but much of it is due to a lack of financial literacy.  

Here are some common reasons people give for not buying disability insurance:  

• “I have it through my employer.” Employer-provided disability insurance is a nice benefit, but it ends when you leave your employer. Additionally, only about 40% of employers offer a long-term disability insurance policy.  
• “I’m young and healthy.” According to research from the Social Security Administration, one in four American 20-year-olds will experience a disability before they reach retirement age.  
• “I don’t work in a dangerous profession.” Anyone can experience a disability, whether on the job or off.  
• “It’s too expensive.” The cost of disability insurance varies depending on the benefit amount, benefit period, occupation, health status, age, and terms of the policy. However, policies can be customized to fit your client’s budget needs.  

Now is the perfect time to help your clients assess their disability insurance needs and get them the protection they need.

For more resources, visit LifeHappens, The International DI Society (IDIS), or the Financial Security Alliance.