When you’re a parent, your mental checklist never really shuts off: Am I saving enough? Do I have the right health insurance? What would happen if something happened to me?
Most parents eventually check the life insurance box. But there’s another “what if” that’s just as important (and way more likely) that often gets missed. What if you don’t die… but you can’t work? That’s where long-term disability insurance comes in.
Most families have limited information about disability insurance, but depend on it to safeguard their ability to earn an income without interruption due to injury or illness. Because if you strip everything else away, your greatest financial asset usually isn’t your house or your retirement account. It’s you!
Your ability to earn income is what drives every financial decision you make—where you live, what you spend, how you save, and whether goals like college tuition or retirement even stay on track. When that income stops, everything else gets shaky fast. Watch this short video.
The Risk Most People Don’t Think About
Ask most people if they need disability insurance, and you’ll hear some version of the same answers: “I’m healthy.” “That’s unlikely to happen to me.” “I’d figure something out.” “I already have it through work.” “It’s probably too expensive.”
On the surface, these reasons seem plausible, until you realize how disability actually happens. It’s rarely dramatic. It’s not usually an accident. More often, it’s something like this: a back injury that won’t heal, a cancer diagnosis, a heart condition, complications from surgery, or a mental health condition that makes working impossible for a period of time.
The odds of a disability event occurring aren’t as distant as most people assume. Roughly 1 in 4 people entering the workforce today will experience a disability that keeps them out of work for at least a year before retirement. Unfortunately, that’s not a “maybe someday” statistic; rather, it could be a middle-of-life reality.
When the Paycheck Stops, Life Doesn’t Pause
The problem is that many families don’t have years of expenses sitting in savings. They have a rhythm— income comes in, bills go out, and life keeps moving. So when income stops, even temporarily, families are often forced into disruptive and sometime irreversible decisions they never planned for, like:
- Tapping emergency savings faster than expected
- Pulling from retirement accounts
- Taking on debt just to keep things steady
- Relying heavily on family support
Disability insurance exists for one simple reason: to keep those choices off the table. It replaces a portion of your income—typically 50–70%—so your family has time and stability while you recover. Think of it as continued income when you can’t earn it yourself.
“I Probably Have Coverage Through Work”… Maybe
Employer plans are a good starting point, but they often don’t tell the full story. The first surprise is usually income replacement. Most group policies cover about 60% of salary - up to a maximum benefit amount which is often far less than total income, and that benefit may be taxable. So the actual take-home replacement can feel significantly lower than expected.
Then there’s the definition of disability. Some policies begin by covering you if you can’t do your job, but later shift to whether you can do any job you’re qualified for. That shift alone can end benefits even if your income hasn’t recovered.
There are also caps on certain conditions, especially mental health-related claims, which are often limited to a fixed period regardless of medical need. And finally, it’s most often not portable. Change jobs, take time off, or move into self-employment, and the coverage often disappears.
Filling the Gaps Most Families Don’t See
When you’re thinking about what kind of disability insurance to put in place, don’t forget about individual disability insurance. This form of disability coverage is designed to sit alongside employer coverage and close any gaps that may exist. It can offer:
- Protection that stays with you even if your job change
- Stronger definitions of your ability to work (often “own occupation”)
- Higher and more stable income replacement
- Longer benefit periods tailored to your situation
For younger parents especially, this matters. These are the years when expenses are high, savings are still building, and your income is doing the heaviest lifting it will ever do.
Why You Should Care About Disability Insurance
Education around disability insurance isn’t about convincing people something bad will happen. It’s about recognizing that income is already the foundation everything else is built on and it’s critical to protect it the same way you would anything else your family depends on.
No one likes to plan for illness or injury. But families don’t necessarily plan around what’s likely. They plan around what would be hardest to absorb. And for most households, the hardest financial shock is the sudden loss of a paycheck that everything else depends on.
If you’re like most people, you don’t think twice about insuring your home, your car, or your health. But because disability insurance is often misunderstood (or overlooked entirely) many people don’t have nearly enough protection in place.
The reality is simple: your income is what holds everything else together. Protecting it shouldn’t be optional. It should be a core part of your financial decision-making.
If you want to learn more about disability insurance, determine the right coverage level, or need help reviewing any existing policies, please don’t hesitate to reach out. Email me at Gary_Blum@strategiesforwealth.com, call me at 914-288-8862, or leave your name and email via this web form.
Gary Blum is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Strategies for Wealth is not an affiliate or subsidiary of PAS or Guardian. Not practicing CPA for Guardian or its subsidiaries or affiliates. CA Insurance License # 0M10186.
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