Over my career as an actuary and business leader at Principal, disability income protection has been an important and consistent area of focus for me because I’ve seen how essential it is to have it when life takes an unexpected turn.
That conviction is deeply shared across Principal, and it’s one of the reasons we chose to become members of the Council for Disability Income Awareness (CDIA) in late 2025. Income protection plays a critical role in supporting financial security, yet it’s still widely misunderstood and underutilized. In fact, at least 51 million working adults in the United States have no disability insurance beyond basic Social Security coverage. This is a significant gap given how limited and difficult those benefits can be to access.
A Common Misconception About Disability
One of the biggest misconceptions is that disability insurance is mainly about accidents. Even the way it is marketed – with images of hospitals, wheelchairs, crutches or casts – can reinforce that idea. In reality, accidents account for only a small share of all disabilities. The vast majority of disabling events are caused by illnesses or chronic conditions such as cancer, heart disease, autoimmune disorders, or mental health challenges.
When someone is seriously ill or managing a chronic condition, working full‑time may no longer be possible. And for many Americans, even a short interruption in income can create real strain. Nearly four out of ten say they would need to borrow or use credit to cover an unexpected $400 expense. Income protection helps ensure that life can continue—bills get paid, families stay financially stable, and recovery can be the priority.
Why Awareness Matters
For me, this ultimately comes down to risk. Am I willing to gamble my future on the assumption that nothing will happen, or am I willing to protect against it?
Income protection removes that uncertainty. It provides peace of mind for individuals, families, and employers alike. And that’s why awareness matters. When people understand what income protection really is and why it exists, they’re far more likely to value it before they need it most.
The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment or tax advice. You should consult with appropriate counsel, financial professionals, and other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.
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