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Why Disability Income Insurance Matters

by AHIP

November 26, 2018

Disability income insurance protects families and offers peace of mind for millions of Americans nationwide. It provides financial benefits in the event of a debilitating illness or injury. Disability income insurers know that when a person is unable to work, lost paychecks can have a devastating effect on not only the individual but their families too. Disability income insurance is there to help disabled individuals transition back to the workplace.

AHIP’s issue brief, Expanding Income Protection Coverage for Working Americans Helps to Strengthen the SSDI Program, shows that beneficiaries across the country benefit from this essential program. Here’s why it needs to be protected:

  • The Social Security Trustees project that, absent congressional action, the Social Security Disability Insurance (SSDI) Trust Fund will be depleted in 2032. This will make Trust Fund income insufficient to pay for scheduled disability benefits.
  • Private disability income protection coverage significantly reduces the burden on public programs such as the SSDI program, Medicare, Medicaid, the Temporary Assistance to Needy Families (TANF) program, and the Special Nutrition Assistance Program (SNAP).
  • Putting in place new federal policies to expand private disability income protection would further reduce the burden on public programs and help restore the long-term solvency of the SSDI program.