According to Willis Towers Watson's 2022 Global Benefits Attitudes Survey, almost half of U.S. employees are looking for a new job or plan to soon. Better pay, health benefits, job security, flexible work arrangements and retirement benefits were the top five reasons driving workers to seek new employment opportunities, according to the survey. As the labor market remains strong, it's a good time to help your clients consider income protection through individual disability insurance as part of their benefits package.

What is individual disability insurance?

Disability insurance helps protect what is often consumers' greatest asset: their ability to earn an income. It's a personal, portable financial protection tool that provides a monthly disability benefit if the insured becomes disabled that is beyond what is available through employer-sponsored benefits. Policies can be customized through riders, for an additional cost, to fit clients' unique coverage needs and some policies even offer dividends or discounts for being an existing customer.

How much does individual disability insurance cost?

Individual disability insurance typically costs 2% to 4% of clients' income and replaces at least 50% to 60% of clients' income, should they need it. Although disability insurance premiums are often less when the policy owner is younger and healthier, clients often overlook this important financial tool because they believe becoming disabled is unlikely or would be covered by a workplace policy. However, 1 in 4 20-year-olds is likely to become disabled at some point before retirement, according to the Social Security Administration. In fact, most accidents are unavoidable and can occur anywhere: at work, on a trip, or even at home. According to the National Safety Council, 90% of disabilities are caused by sicknesses and over 85% of disabling accidents and sickness are not work-related, according to the National Safety Council. Given the risk that a disabling condition can happen outside of a workplace context, clients may not be fully covered by their workplace policy.