Why Disability Insurance Matters: Facts and Coverage Guide
Author: Ian C. Langtree - Writer/Editor for Disabled World (DW)
Published: 2010/08/03 - Updated: 2026/02/03
Publication Type: Informative
Category Topic: Insurance - Related Publications
Page Content: Synopsis - Introduction - Main - Insights, Updates
Synopsis: This information provides practical guidance on disability insurance, addressing a critical financial protection gap that affects millions of working Americans. Drawing on data from established insurance industry sources including LIMRA International and the American Council of Life Insurers, the article presents sobering statistics: workers face a four-times greater risk of disability than death before age 65, and one-third of Americans between 35 and 65 will experience a disability lasting over 90 days. The resource explains two main policy types - non-cancelable and guaranteed renewable - and highlights important distinctions between individual and employer-provided group coverage. This proves particularly valuable for people with disabilities, seniors, and working-age adults who need to understand how to protect their income when medical conditions or injuries prevent employment, especially given that 80 percent of workers would exhaust savings within two months without income replacement - Disabled World (DW).
Introduction
AccuQuote, a leader in providing term life insurance quotes to people across the United States, explains the benefits of disability insurance. The multi-carrier life insurance quoting and brokerage firm encourages families to include disability insurance in their overall financial plan.
What is disability insurance for? Disability insurance, also known as disability income insurance, is designed to compensate an insured person for a portion of their lost income because of a disabling injury or illness.
How does it work? Benefit payments are made either weekly or monthly for a specified period of time during the continuance of the insured's disability.
Main Content
Disabilities happen more often than most people think. Here are the facts:
- A disabling injury occurs every 1.5 seconds, according to National Safety Council Injury Facts.
- 80 percent of U.S. workers will exhaust their savings in only two months without the ability to earn an income, according to the Commissioner's Disability Table.
- The odds of suffering from a disability during your working lifetime are four times greater than the odds of dying before the age of 65, according to LIMRA International.
- One-third of all Americans between 35 and 65 will suffer from a disability that will keep them out of work for more than 90 days, according the American Council of Life Insurers.
"It's something we all take for granted - the ability to work," says Byron Udell, founder and CEO of AccuQuote. "But think about it, what would you do if you weren't able to earn any money for 90 days, a year, five years or even longer? How would you and your family pay for the mortgage, food and other bills? How long could your family survive financially? Disability insurance takes all of those worries away."
AccuQuote offers two types of disability insurance; non-cancel-able and guaranteed renewable. In non-cancel-able disability insurance the policy's premium can never be raised above the amount shown in the policy, and benefits will not be reduced as long as the premiums are paid on time.
AccuQuote helps consumers find the best values in term life insurance by combining instant online life insurance quotes with the personal service of unbiased life insurance professionals that can help answer questions, identify important issues, and make meaningful recommendations. The company offers consumers an extensive selection of life insurance options, including term life, whole life, and universal life, as well as selected annuities. The website has many handy insurance tools, including a term life insurance calculator to help you figure out how much to buy, a glossary that explains industry terminology, a collection of articles that cover the basics about life insurance and a blog which answers many questions about life insurance.
Guaranteed renewable disability insurance gives the insured the right to renew the policy with the same benefits, but the insurer can increase the premiums, as long as they are increased for all other policyholders in the same class (i.e., having the same characteristics).
"Keep in mind, if you're counting on your group disability insurance, you may want to take a closer look," says Udell. "One overwhelming disadvantage of group disability insurance is that it can be reduced or even terminated if you leave your current employer."
Insights, Analysis, and Developments
Editorial Note: The financial vulnerability most American households face when disability strikes remains a largely overlooked risk in personal finance planning. While workers routinely insure their homes, vehicles, and lives, far fewer protect their most valuable asset - their ability to earn income. The statistics presented here reveal a troubling disconnect: despite disabilities affecting workers at four times the rate of premature death, only 40 percent carry disability coverage. For individuals already living with disabilities or chronic conditions, understanding these insurance mechanisms becomes even more crucial, as gaps in coverage during career transitions or job changes can leave families exposed precisely when they need protection most. The distinction between policy types and the limitations of employer-sponsored plans deserves careful consideration, particularly for those whose health conditions make securing individual coverage more challenging or expensive as they age - Disabled World (DW).
Author Credentials: Ian is the founder and Editor-in-Chief of Disabled World, a leading resource for news and information on disability issues. With a global perspective shaped by years of travel and lived experience, Ian is a committed proponent of the Social Model of Disability-a transformative framework developed by disabled activists in the 1970s that emphasizes dismantling societal barriers rather than focusing solely on individual impairments. His work reflects a deep commitment to disability rights, accessibility, and social inclusion. To learn more about Ian's background, expertise, and accomplishments, visit his full biography.