Use Disability Insurance Awareness Month to Educate

Disability insurance is one of the most overlooked types of insurance, despite being key for protecting your clients' most valuable asset — their ability to earn an income.

The 2023 Insurance Barometer Study by LIMRA and Life Happens found that four in 10 people were very or extremely concerned about how they'd get by financially if they couldn't work due to a disabling illness or injury.

And the Social Security Administration found that one in four workers entering the workforce will become disabled in their working lifetime.

These staggering statistics show the various challenges that can occur from an unforeseen injury or sickness, so it's paramount that financial advisors and agents educate clients about the role that disability insurance plays in protecting anyone who works, particularly as there is an evident need to educate others about disability insurance.

A good place to start with helping clients overcome the lack of education around disability insurance is debunking myths, because that's an easy way to explain what disability insurance is and isn't.

One of the biggest misconceptions we can help clients with is the myth that people do not need more coverage if they already have coverage through work.

Many clients overlook what exactly is offered through work or the repercussions that can occur if they switch jobs or don't have enough coverage.

So how can clients overcome these misconceptions and learn more about disability insurance?

Using unique educational resources from social media posts, digital flyers, emails, and videos to educate clients, the nonprofit Life Happens also provides a Disability Insurance Needs Calculator and videos that explain disability insurance in an easy, and concise way.

This year, for the first time ever, there are also resources available in Spanish.

May's Disability Insurance Awareness Month, the annual campaign coordinated by Life Happens, also provides the perfect opportunity for the financial industry to start these conversations with clients, particularly with this year's theme, which is "Disability insurance: for anyone who works."

Advisors can leverage the month of May — and beyond — to remind people the role adequate coverage plays in protecting one's financial future and how to utilize resources to help them better understand and assess how disability insurance fits into their financial plans.

Now, as we are well into DIAM, is the time for agents and advisors to encourage people to explore individual disability insurance policies for their clients, whether they're employed by a company or own a business or freelance.

Disability insurance is for anyone who works, and we, as agents and advisors, are here to help them.

Paul Dougherty, LUTCF, FSS, LACP, is secretary of Life Happens and a past president of the National Association of Insurance and Financial Advisors. He has worked as a State Farm agent in Hyattsville, Maryland, for 25 years.