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Financial Well-being for Everyone: Disability Income Insurance

Financial Well-being for Everyone: Disability Income Insurance

May 18, 2022

If someone asked, "What is your most valuable asset?" you might think of your home or cars. While these are significant, this answer overlooks the most valuable asset of all: your ability to work and earn your income into the future.

It's commonsense to insure our homes, cars, and other assets like jewelry in case of an emergency. But do you have protection over your future income? Who would pay your salary, bonuses and commissions if you got sick or were in an accident and couldn't work for some period of time?

We don't like to linger on these possibilities, so having income insurance during an emergency helps, a LOT. This is called "disability income insurance."


People tend to think “that won’t happen to me.” That’s understandable since no one wants to think they could face a sudden disability, even for a short time. But according to the Center for Disease Control, approximately 61 million American adults are living with a disability at any given time. That’s 26 percent of the U.S. population. 1


Another common misconception is that disability is usually caused by an accident. Accidents do happen, but they only account for 10 percent of the disabilities that cause people to stop working. Surprisingly, 90% of long-term disabilities are caused by common illnesses – not injuries or catastrophic accidents.2 This includes heart conditions, depression, multiple sclerosis, cancer and others.


Disability income insurance is sometimes called “income replacement” because that’s exactly what it does. It replaces your income in the event an accident or illness. You may have some form of disability income insurance through your employer, but most employer plans do not offer comprehensive coverage. They typically cover a % of your base salary and exclude bonuses or commissions. In this case, it’s a good idea to buy individually-owned disability income insurance to address the risk of lost income. 


How much you will pay for a disability income insurance policy depends on a variety of factors. These include things like your occupation, age, overall health, how much coverage you need, and more. Broadly speaking, disability income insurance is more affordable than people suspect. Also, the younger you are when you purchase a policy, the less expensive it will be.


Policies should be customized for your personal situation. For example, if you have monthly student loan payments, you may be able to add a student loan rider to cover those payments. A non-cancelable policy means the insurance company cannot raise the premiums for as long as you own the insurance. Other options include a cost-of-living adjustment to keep pace with inflation, and benefit increase options to make adjustments in your coverage as your income increases over time. Your policy can even include monthly payments to a savings account.

In the event you suffer an illness or an accident, you should not have to also worry about money. Instead, you want to focus entirely on recovery and getting back to good health.

Contact Cambium Group to review your disability benefits and confirm you and your household are appropriately protected.


1Disability Impacts All of Us Infographic, Center for Disease Control, September 2020
2Integrated Benefits Institute, 2018 Health and Productivity Benchmarking, Long-Term Disability.

Brought to you by The Guardian Network © 2020, 2022. The Guardian Life Insurance Company of America®, New York, NY. Individual disability income products underwritten and issued by Berkshire Life Insurance Company of America (BLICOA), Pittsfield, MA or provided by Guardian. BLICOA is a wholly owned stock subsidiary of and administrator for the Guardian Life Insurance Company of America (Guardian), New York, NY. Product provisions and availability may vary by state. Optional riders are available for an additional premium.

2022-137679 Exp. 5/2024