Disability income insurance
Your paycheck is your livelihood. Disability income insurance protects it.
Disability income insurance replaces a portion of your income if you get sick or hurt and can’t work 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. If you’re ever unable to work due to an illness or injury, disability income insurance can:
- Replace income.
- Help you retain your savings.
- Help you pay expenses.
Who disability income insurance helps protect
If you become unable to work due to illness or injury, disability income insurance provides a steady source of income so you can focus on your health and take care of your family.
Individuals
Workers’ compensation only protects you if your disabling illness or injury is job-related. If your employer doesn’t offer other disability benefits, disability income insurance can provide valuable security and protection.
Employees with coverage
An individual disability income insurance contract can help maintain your family’s quality of life by bridging the gap between what’s covered by your employee benefits and the remainder of your wages. It can even follow you if you change jobs.
Stay-at-home spouses
Thrivent is one of the few insurers that covers people who stay home to care for their families1—something we recognize as valuable hard work. Coverage can help pay for childcare, housekeeping and other responsibilities.
Individuals
Workers’ compensation only protects you if your disabling illness or injury is job-related. If your employer doesn’t offer other disability benefits, disability income insurance can provide valuable security and protection.
Employees with coverage
An individual disability income insurance contract can help maintain your family’s quality of life by bridging the gap between what’s covered by your employee benefits and the remainder of your wages. It can even follow you if you change jobs.
Stay-at-home spouses
Thrivent is one of the few insurers that covers people who stay home to care for their families1—something we recognize as valuable hard work. Coverage can help pay for childcare, housekeeping and other responsibilities.
Protect what matters
Without disability income insurance coverage, an accident, illness or injury could put your financial stability at risk.
Do you need disability income insurance?
While you’re in good health, it may be hard to think about being unable to work. But the chances that you’ll miss work due to a long-term or permanent illness or injury are greater than you may realize. In fact, just over one in four of today’s 20-year-olds will become disabled before reaching age 67.
Read more to discover the common questions you should ask when determining if disability income insurance is right for you.
Read more to discover the common questions you should ask when determining if disability income insurance is right for you.
Frequently asked questions
Disability income insurance can give you the time you need to recover or make other arrangements. If you’re trying to determine whether disability income insurance is right for you, here are answers to some common questions.
Why is disability insurance important?
Disability 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.
What’s the difference between short-term and long-term disability insurance?
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 til you reach retirement age.
What does disability insurance cover?
Disability 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.
How much does disability insurance cost?
As a general rule of thumb, a disability insurance policy costs between 1% and 3% 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.
Is disability insurance tax-deductible?
The short answer: No. Unlike other types of health insurance, you cannot write off disability 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 insurance do you need?
How much disability 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.
Determine the right amount of disability insurance
Is disability insurance worth it?
For many people, disability 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. 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.
Is disability insurance through your employer enough?
While you may receive group disability 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.
Is Social Security Disability Insurance (SSDI) enough to live on?
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.
Connect
Get in touch with a Thrivent financial adviser to discuss how disability income insurance can help you be better prepared for whatever life brings.
1Coverage for stay-at-home spouses not offered in all states.
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.
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.
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