Disability income insurance is perhaps one of the most overlooked, yet most valuable financial products available today. While many Americans insure their homes, vehicles, and even smartphones, few adequately protect their most important asset: their ability to earn a living.
According to the Social Security Administration, 1 in 4 of today’s 20-year-olds will experience a disabling condition before reaching retirement age. And despite the common belief that “it won’t happen to me,” the numbers tell a different story.
The Reality of Disability in 2025
- 51 million working adults in the U.S. have no private disability insurance. (Council for Disability Awareness)
- If forced to rely solely on Social Security Disability Insurance (SSDI), the average monthly benefit is only $1,537—just $18,444 annually. (SSA Monthly Statistics, 2025)
- The average long-term disability claim lasts 34.6 months—nearly three years. (AHIP, 2025)
- Nearly 50% of adults say they could not pay a $400 emergency expense without borrowing money or selling possessions. (Federal Reserve, 2024)
- Medical issues are the top cause of bankruptcies, accounting for 45% of filings. (American Journal of Public Health, updated 2024)
In short: without disability insurance, most Americans are one serious diagnosis or accident away from financial disaster.
Overcoming Objections with Facts
Clients may decline DI coverage for any number of reasons—cost, denial, or misunderstanding the risk. But when you lead with facts, you empower them to make informed decisions:
- Only 14% of Americans have individual disability coverage. (NAIFA)
- The top causes of long-term disability claims:
- Musculoskeletal disorders – 30%
- Cancer – 15%
- Mental health – 9%
- Circulatory issues – 8%
- And for short-term disability?
- Pregnancy – 22%
- Musculoskeletal disorders – 20%
- Digestive disorders – 8%
- Mental health issues – 7%
Use these insights as conversation starters. Knowledge gaps, not disinterest, are often the biggest obstacle.
Making an Emotional Connection
If data doesn’t move them, dig deeper. Ask questions that encourage self-reflection:
- How long could you go without a paycheck and still pay your mortgage?
- What’s your financial plan if an injury keeps you out of work for six months? A year?
- Would your family be forced to make sacrifices? Move? Pull from retirement or college savings?
These questions may feel uncomfortable, but they’re often the wake-up call your clients need.
Disability Insurance Awareness Month Resources
May is Disability Insurance Awareness Month. This provides agents and advisors a good opportunity to discuss the benefits of incorporating a disability insurance policy into their protection mix.
IAMS is pleased to offer our Disability Insurance Prospecting Kit. This package contains a wealth of material for discussing disability insurance with prospects and clients, including:
- A pre-approach letter and prospecting emails from a trusted carrier
- Sales concepts for agents
- A DI for Business Owners guide
- Consumer-facing flyers with essential details, stats and figures
- Turnkey social posts and fillable forms
