What is Disability Insurance?

Disability Insurance is an income protection policy that provides monthly benefits to supplement the loss of wages during an unforeseen injury or illness. Disability Insurance is designed specifically to help cover those basic expenses while your clients recover from an illness or injury and protect the things that are most important to them.

If your client loses income for an extended period, how will that time gap affect their home, their family and their savings and retirement? Without a plan or disability insurance product, a family could lose their home and put a strain on their budget to make ends meet. Some people think of disability insurance as “paycheck protection.”

Disability insurance functions like many other insurance policies in that your client pays a set amount at regular intervals and in exchange, he/she receives benefits if he/she uses the policy. The monthly benefit can help protect their home since a mortgage or rent payment is often a significant monthly expense.

Each client’s situation is different. AIPMA has an experienced Business Development team to discuss product differences, answer questions, and generate illustrations to help you show life insurance product options to your clients. Contact our Business Development Team at (800) 783-5206, Prompt 2 or marketing@aipma.com.

Disability Insurance Statistics

• The Centers for Disease Control reports that 26% of Americans have some disability, roughly translating to about 61 million people.
• Six in 10 consumers (61%) say they would face financial hardship within one year if the primary wage earner becomes disabled.*
• Without proper insurance, consumers would have no choice but to get the money elsewhere: 51% of consumers would pull from their personal savings; 32% would look to family; and 26% would withdraw from their retirement accounts incurring penalties. *
• Sixteen percent of consumers say they don’t know what source of financial help they would turn to, and 17% say they are unsure of how much time could pass before feeling financial hardship.*
• The top three reasons consumers purchased DI are retirement planning (31%), entering the workforce (28%), and close familiarity with a lack of disability coverage (27%).*

*Source: 2023 Insurance Barometer Study, LIMRA and Life Happens