Questions to ask yourself
- What are my essential monthly expenses that would need coverage if I couldn’t work?
- How long could my savings support me if I were unable to work?
- Do I have existing disability coverage through my employer or other sources?
Disability income insurance
Your income supports your family and future goals. A financial advisor can help support your financial plan with meaningful income protection.
Protect your income from the unexpected
A strong foundation for your financial plan starts with meaningful insurance coverage. Most people protect their health, home, and car with insurance. Protecting your income if injury or illness keeps you from earning a paycheck is just as important. Disability income insurance plays a vital role in helping to protect the financial goals you have for you and your family.
How it works
Disability income insurance can replace a portion of your income if you can’t work due to injury or illness for an extended period of time. The premiums you pay secure you a monthly benefit amount for a set term or until you can return to work.
Who should have it
Anyone who relies on an income to pay for day-to-day living expenses can benefit from disability income insurance. Stay-at-home spouses can also benefit from coverage.1
Why it matters
Your ability to earn an income is one of your most valuable assets. Protecting your paycheck helps you maintain your current standard of living and reduce the impact of an already stressful situation.
How disability income insurance can help
Just as you protect your home and health, disability income insurance helps safeguard your income and financial goals.
How a financial advisor can help
A financial advisor helps you build a strong foundation for your financial plan and talks with you about having meaningful insurance coverage that helps protect you and your family if something unexpected happens.Meeting with a financial advisor
Prepare for meeting with a financial advisor about building your financial plan by considering these questions.
Questions to ask your financial advisor
- How do you determine the right amount of coverage for me and the percentage of my income it will replace?
- Are there scenarios that we should specifically address or instances where coverage may be excluded?
- What are the benefits of having coverage in addition to what my employer offers?
Frequently asked questions
Still have questions? Give us a call 800-847-4836 or contact us.
Disability income insurance can provide a critical safety net if you become unable to work due to illness or injury. Coverage can help you replace part of your income so you can keep up with expenses like your rent or mortgage, groceries, utilities and other bills.
Short-term (STDI) and long-term disability insurance (LTDI) ultimately offer similar flexibility and income replacement, but different benefit period lengths. While most STDI contracts cover you for 13–26 weeks, some LTDI plans may pay benefits until you reach retirement age.
Disability income insurance covers most illnesses and injuries that inhibit your ability to work. That can include everything from broken bones and chronic pain to cancer, depression and more. Your benefits can be used to pay for expenses as you see fit.
As a general rule of thumb, a disability income insurance policy costs between 1% and 4%* of your annual salary. But a more specific figure will depend on factors like your benefit amount, health status, occupation, age and the length of your waiting period before benefits kick in.
The short answer: No. Unlike other types of health insurance, you cannot write off disability income insurance premiums on your tax return. That’s because they’re paid with after-tax dollars. The upshot is that the benefits you’d receive are tax-free if, or when, you’d need them.
How much disability income insurance you need largely depends on your expenses and the portion of your paycheck you’d need to keep up with them. Could you live on 90% of your income? 80%? Take inventory of your bills and other needs. And consider coverage you may already have—like group disability insurance through your employer or Social Security Disability Insurance, if you qualify. Private disability coverage may help you fill any gaps.
For many people, disability income insurance can be a worthwhile investment. Especially when about 25% of today’s 20-year-olds will experience a disability before age 67—typical retirement age.2 Disability insurance replaces a portion of your income if you can’t work due to injury or illness. And a policy may be more affordable than you think.
While you may receive group disability income insurance as an employee benefit through work, your plan likely doesn’t cover your entire salary. Consider whether or not you could live on 50% or 60% of your income. And also note that your employer’s plan likely only covers short-term disabilities. Private disability insurance can help fill those gaps by offering more income replacement and a longer benefit period. Plus, you don’t have to worry about losing that coverage if you lose or change jobs.
While Social Security Disability Insurance (SSDI) can offer essential support to people who can’t work, the program has considerable limitations and can be difficult to qualify for. Based on 2022 Social Security Administration Data, researchers also found that SSDI benefits are rarely enough to cover even half of someone’s cost of living.
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- 1. Coverage for stay-at-home spouses not offered in all states.
2. Social Security Fact Sheet - *Based on Thrivent’s current disability income insurance product at standard rates.
- The members’ experiences may not be the same as other members’ and do not indicate future performance or success.
- If requested, a licensed insurance agent/producer may contact you and financial solutions, including insurance may be solicited.
- Disability income insurance contracts have exclusions, limitations, reductions of benefits, and terms under which the contract may be continued in force or discontinued. For costs and complete details of coverage, contact your licensed insurance agent/producer.
- Thrivent financial advisors and professionals have general knowledge of the Social Security tenets. For complete details on your situation, contact the Social Security Administration.
- Guarantees based on the financial strength and claims paying ability of Thrivent.
- Thrivent and its financial advisors and professionals do not provide legal, accounting or tax advice. Consult your attorney or tax professional.
How it works