WASHINGTON, D.C., Oct. 28, 2013 – The American Council of Life Insurers (ACLI) lauded today the Congressional Income Protection Caucus, a newly-formed group in the 113th Congress that will focus on workplace disability insurance benefits.

“ACLI congratulates the organizers of the caucus, Sen. Kay Hagan, (D-NC), Sen. Mark Kirk, (R-IL), Rep. Stephen Fincher, (R-TN), and Rep. Carolyn McCarthy, (D-NY). They recognize the vital role that employer-based benefits such as disability income insurance can play in the financial lives of American families,” said ACLI President and CEO Dirk Kempthorne.

Workplace disability insurance benefits provide individuals and families with financial security to better cope with the inability to work due to illness or injury. Most people have neither the savings nor insurance protection to provide for themselves or their families should a life-changing event occur. Disability benefits pay a portion of an individual’s salary while he or she is unable to work.

A typical group policy pays a percentage of your salary (40-60 percent) up to a specified limit, such as $5,000 per month. Benefits could continue for a limited time, such as one to five years or until your retirement age under Social Security. Also, benefits could continue until age 65 or until you are able to return to work. Group coverage lasts only as long as you are employed or remain a member of the group.

ACLI is pleased the caucus leaders reported on how group disability income benefits reduce reliance on public assistance, Governor Kempthorne said.

“Especially relevant to policymakers in Washington, an economic analysis by Charles River Associates showed that employer-sponsored benefits like disability insurance save the government up to $4.5 billion per year by reducing pressure on the public safety net,” the caucus leaders said.

“Senators Hagan and Kirk, and Representatives Fincher and McCarthy, have it right. Disability income insurers – indeed, all insurers – augment the public safety net,” Governor Kempthorne said.

“ACLI looks forward to working with the Congressional Income Protection Caucus to raise awareness of the risk of disability, promote personal responsibility and encourage preparedness,” Governor Kempthorne said.

For more information about disability income insurance, download our consumer brochure. (PDF)