07 May 2012

May is Disability Insurance Awareness Month — and Lincoln Financial Group (NYSE:LNC) is joining the Council for Disability Awareness and LifeHappens.org to encourage consumers to be better prepared for whatever life sends their way.

Often overlooked, disability insurance is intended to replace or supplement income while employees are out of the workplace due to a covered disabling injury or illness, and can be critical in helping to address basic physical needs and daily living expenses.

"There is a broad lack of understanding about the benefits of disability insurance, and as a result, far too many people are failing to put measures in place to protect themselves from time away from work," said Rob Grubka, President, Group Protection at Lincoln Financial Group. "We insure our homes, cars and other valuables, but often forget our most valuable asset is our ability to earn money. Investing in disability insurance can protect your family and provides peace of mind for any worker who relies on a paycheck to maintain financial stability."

Some common misperceptions regarding disability insurance include:



    Disability insurance is primarily used for protection against accidents.


    Disability insurance may prevent against any condition that takes someone out of work. While this certainly includes accidents, it can also cover planned absences, such as a surgery or pregnancy which both result in time away from the office.


    Younger generations do not need to worry about disability insurance.


    On the contrary, the Census Bureau reports that 11.4 percent of Americans ages 25-44 are affected with a disability.


    Very few people are affected by a disability.


    The Social Security Administration estimates that three out of 10 Americans entering the workforce today will become disabled before they retire. Furthermore, the United States Census Bureau estimates that more than 50 million Americans (about one in five) report having some level of disability.

Once the decision has been made to invest in disability coverage, there are important factors to consider to ensure the right coverage is selected for a particular situation. A few ways people can take charge include:

  • Talk to your employer. Some employers offer group disability insurance. It may be helpful to talk with your benefits representative to learn more about what is available to you. Depending on your particular needs, you may also want to consider individual disability insurance to supplement the group policy, if applicable.
  • Assess how much you would need. Many policies cover between 50 percent and 70 percent of your income; think about how much coverage is needed to cover both short-term and long-term expenses, as well as other sources of disability income.
  • Consider tax benefits. If you pay your insurance premiums with after-tax dollars, versus having your employer pay them, your benefits will remain tax free, since they are no longer considered income.

Lincoln Financial is a supporter and member of the Council for Disability Awareness (CDA), a non-profit, educational organization that is dedicated to raising awareness about the risk and consequence of disability. Additionally, Lincoln is a supporter of LifeHappens.org, a group of prominent financial industry and advocacy organizations that have joined together to raise public awareness of the need for comprehensive retirement planning.

Lincoln Financial offers a range of disability insurance products and services, including short-term disability (STD), long-term disability (LTD) and Family and Medical Leave Act administration.

About Lincoln Financial Group

Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. With headquarters in the Philadelphia region, the companies of Lincoln Financial Group had assets under management of $170 billion as of March 31, 2012. Through its affiliated companies, Lincoln Financial Group offers: annuities; life, group life, disability and dental insurance; 401(k) and 403(b) plans; savings plans; and comprehensive financial planning and advisory services. For more information, including a copy of our most recent SEC reports containing our balance sheets, please visit www.LincolnFinancial.com.

Insurance products are issued by The Lincoln National Life Insurance Company (Fort Wayne, IN), which does not solicit business in New York, nor is it licensed to do so. In New York, insurance products are issued by Lincoln Life & Annuity Company of New York (Syracuse, NY). Both are Lincoln Financial Group® companies. Product availability and/or features may vary by state. Limitations and exclusions apply.


Investor Contacts:
Jay Russo
E-mail: Jay.Russo@LFG.com