Survey: Most Americans Flag Income Protection Among Top Financial Goals, but Few Own a DI Policy

“From the moment you start working until the day you retire, your ability to earn an income is your most important financial asset,” says Sandy Botcher, Northwestern Mutual Vice President-Disability Income Insurance, in a prepared statement. “Consider this: a $60,000 a year salary results in $2.4 million over a 40-year career—and that doesn’t take into account inflation, raises, or the long-term growth potential of money invested in retirement saving vehicles along the way. “What happens if a disability prevents you from earning this income?”

Individual disability insurance pays a monthly benefit in the event of a disability, helping replace lost income, meet ongoing financial obligations, and even maintain financial goals. Unlike workplace disability insurance, individual disability insurance belongs to the individual and is portable from one job to the next.

“We’re seeing that Americans recognize this risk, but are taking an ‘it won’t happen to me’ approach,” says Botcher. “According to data from the Society of Actuaries, people in their working years are much more likely to be disabled for 90 days than they are to die prematurely.”