Insurance

Disability Insurance: Protecting Your Income

A 35-year-old is more likely to experience a disabling illness or injury before retirement than to die before retirement. Most households have no plan for what …

Insurance

Disability Insurance: The Protection Most People Skip.

The most financially consequential insurance most working people don't have.

A 35-year-old is more likely to experience a disabling illness or injury before retirement than to die before retirement. Most households have no plan for what happens if their income stops unexpectedly — and doesn't restart quickly.

1 in 4workers will experience a disability lasting 90+ days before retirement — a probability higher than most people's intuitive estimate and far higher than the probability of dying during the same period

The Situation

The Income Protection Gap

Life insurance protects against death. Disability insurance protects against something more statistically likely: an extended inability to work. Without disability coverage, a 6-month or multi-year income disruption — from illness, injury, or a condition that develops over time — depletes savings, forces asset liquidation, and can permanently alter financial trajectories.

Life insurance protects your family from your death. Disability insurance protects your family from your survival without income.
— Worthune Decision Framework

You have life insurance but not individual disability insurance
You rely on employer short-term disability coverage without knowing whether long-term coverage exists
You've never evaluated how long your emergency fund and savings would sustain your household without income

About This FinBook

A 35-year-old has a 1-in-4 chance of disability before retirement. Learn how to evaluate employer coverage, calculate your gap, and select the right policy.

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