Life has a way of throwing curveballs when we least expect it. While you may have carefully planned for the future with savings, retirement accounts, and health insurance, there’s one piece of the puzzle you might be overlooking: disability insurance. Many people don't give it a second thought, but disability insurance is one of the most important safeguards you can have in place. It protects your income if you’re unable to work due to illness or injury, and that kind of safety net can make all the difference.

Your Income Is Your Biggest Asset

When you think about assets, you may picture your home, investments, or car. But your most valuable asset is your ability to earn an income. All those plans—whether it’s paying bills, saving for your children’s education, or traveling during retirement—depend on that steady stream of earnings. Now, imagine what would happen if that suddenly disappeared.

According to the Social Security Administration, one in four 20-year-olds today will experience a disability before they retire. That’s 25% of people who could face an extended period of lost income. It might be from something you’d never expect, like a car accident, a major surgery, or even mental health issues. Disabilities aren’t always visible or permanent, but they can still disrupt your ability to work for months, even years.

Disability insurance is there to cover a portion of your income during these times so that you don’t have to drain your savings, fall into overwhelming debt, or put your long-term goals on hold.

When Savings Aren’t Enough

You might think, "I’ve got savings—I’ll be fine." But let's break that down. Experts recommend you keep three to six months’ worth of expenses in an emergency fund. That’s a great cushion for unexpected costs, like car repairs or job loss. But what happens if you're unable to work for a year or more due to an illness or injury?

The average long-term disability claim lasts over 34 months. That’s nearly three years! For many households, tapping into savings for that long simply isn’t feasible. Disability insurance fills that gap by providing a reliable source of income, helping you keep up with everyday expenses like housing, groceries, and childcare.

Imagine you’re a teacher who breaks a leg in an accident. Your recovery might take months, and while short-term disability insurance might cover part of that time, what if complications arise? The longer your recovery, the more your financial situation could spiral without additional income protection. Disability insurance gives you peace of mind that you’ll be taken care of, no matter how long recovery takes.

Beyond the “What Ifs”

Some people avoid discussing disability insurance because thinking about worst-case scenarios isn’t exactly fun. But protecting yourself with a plan isn’t just about fear; it’s about empowerment. Knowing that your family won't face financial devastation if you’re unable to work gives you freedom. You can focus on getting better without worrying about how to keep up with mortgage payments or health insurance premiums.

Consider Beth's story. Beth was a freelance graphic designer in her 30s when an unexpected autoimmune disease made her unable to work full-time for two years. Because Beth came prepared with disability insurance, she was able to maintain her apartment and cover medical bills without relying on friends or family for financial help. That safety net allowed her to focus fully on her treatment and eventual recovery.

These stories are more common than most people think. Accidents and illnesses can happen to anyone, at any stage of life. Don’t leave your financial stability to chance.

Common Misconceptions About Disability Insurance

You’re not alone if you think disability insurance seems unnecessary or confusing. But there’s a lot of misinformation out there. Here are some common myths and the truth behind them:

  • "I’m young and healthy; I don’t need it." Being young and healthy is exactly why you should consider disability insurance now. Premiums are often more affordable when you’re younger, and we’ve already established that unexpected disabilities can happen to anyone.
  • "It’s too expensive." Disability insurance is often more affordable than people think, especially for the coverage it provides. Many workplace plans are free or come with a small fee. Even individual policies are customizable, so you can find a plan that fits your budget.
  • "I’m covered by workers' compensation." Workers' comp only applies if your injury or illness is directly related to your job. However, most disabilities stem from non-work-related incidents, illnesses, or conditions. Disability insurance steps in to protect you outside of the workplace too.

Make It Part of Your Plan

Disability insurance isn’t just for certain professions or situations. It’s for anyone who depends on their paycheck to cover the essentials in life. Whether you’re a corporate professional, freelancer, entrepreneur, or stay-at-home parent in need of spousal income protection, there’s a plan that can suit your needs.

Start by looking into whether your employer offers disability insurance. Many companies provide short-term disability coverage, and some even include long-term plans. You can also explore private policies, which often offer more flexibility in terms of coverage amounts and policy duration.

When evaluating policies, ask the right questions:

  • How much of your income will the policy replace?
  • What’s the waiting period before benefits kick in?
  • How long will benefits last?

This process might feel daunting at first, but it’s an investment in your future. Just like you'd insure your home or car, insuring your income is a critical part of financial well-being.