Women in engineering and STEM fields invest years building specialized skills, advancing their careers, contributing to innovation and often balancing responsibilities at home and caring for family. Yet one critical aspect of financial security is often overlooked: protecting the ability to continue earning an income.
A disability, whether caused by an illness like cancer or a chronic condition, a mental health challenge, or an unexpected injury, can prevent you from working for months or even years. Understanding this risk and how to plan for it can help safeguard the future you’ve worked hard to build.
Why Your Income Is Your Most Valuable Asset
Your earning power is more than just a paycheck. It supports your lifestyle, fuels your goals, and enables long-term financial independence. For many women in STEM, that income reflects years of education, training, and
professional growth.
According to the U.S. Bureau of Labor Statistics, women in STEM fields earn a median annual wage of approximately $103,580, depending on specialization, experience, and location. This higher earning potential is a direct result of technical expertise and career dedication.
But what would happen if an illness or injury prevented you from working for months or even years? Without a steady income, maintaining financial stability, meeting obligations, and continuing long-term goals could become significantly more challenging. Protecting your income is, in many ways, protecting your future.
Understanding the Risk of Disability
Disability is more common than many people realize. Nearly 1 in 4 of today’s 20-year-olds will experience a disability before reaching retirement age. While disability can affect anyone, research shows that women are more likely to experience longer-lasting disabilities than men.
Several factors contribute to this increased risk. Women are more prone to certain conditions, including autoimmune diseases, musculoskeletal disorders, and mental health challenges—all of which can impact the ability to work. Additionally, women tend to live longer, which increases the likelihood of experiencing a disability over a lifetime.
Currently, an estimated 35 million women in the United States are living with a disability. Despite this, only about 18% have adequate disability insurance coverage. This gap highlights a significant area of financial vulnerability, particularly for professionals whose income is closely tied to their ability to work.
Why Disability Coverage Is Often Overlooked
Despite the risks, many women do not actively plan for income protection. This is often due to a combination of misconceptions, competing priorities, and lack of awareness.
One common factor is optimism bias, which is the belief that a disabling event is unlikely to happen personally. Others may not fully understand how disability insurance works or how to obtain it. In some cases, individuals assume that employer-provided coverage or Social Security benefits will be sufficient.
Cost is another consideration. While some perceive disability insurance as expensive, this perception often leads to underestimating the financial impact of losing income. Additionally, career breaks, such as time taken for caregiving, can interrupt financial planning and reduce awareness of the need for continuous income protection.
Recognizing these barriers is an important first step toward making informed decisions about financial security.
What Disability Insurance Provides
Disability insurance is designed to replace a portion of your income if you are unable to work due to illness or injury. It acts as a financial safety net, helping you manage expenses and maintain stability during periods of recovery.
There are two primary types of coverage: short-term and long-term disability insurance. Short-term coverage, often provided by employers, typically replaces income for a limited period, commonly up to six months. While valuable, it may not be sufficient for extended disabilities.
Long-term disability insurance provides coverage for longer durations, sometimes lasting several years or until retirement age, depending on the policy. This is particularly important considering that the average disability claim lasts nearly three years which is well beyond the scope of most short-term plans.
It’s also important to understand the limitations of other sources of support. Employer-sponsored plans may cap benefit amounts or durations, and benefits may be taxable if the employer pays the premiums. Social Security disability benefits can be difficult to qualify for, may involve long waiting periods, and often do not fully replace lost income.
For many professionals, having individual disability insurance in addition to employer coverage can provide more comprehensive protection.
Steps To Strengthen Your Financial Protection
Planning for the unexpected doesn’t have to be overwhelming. Taking a few proactive steps can help you better understand your options and protect your earning power.
- Evaluate your personal risk. Consider your health history, lifestyle, and any factors that could increase the likelihood of a disability.
- Review your current coverage. If your employer offers disability insurance, understand what percentage of your income is covered, take time to understand what percentage of your income is covered, how long benefits last, and any limitations. It’s also important to know that employer-provided coverage is often limited and may not fully replace your income. In many cases, individual or group disability insurance can supplement or layer on top of employer coverage to provide more comprehensive protection.
- Explore professional resources. Many membership organizations like IEEE offer access to group insurance options that complement employer coverage and provide additional flexibility.
- Consult a specialist. Disability insurance policies can vary widely. A knowledgeable professional can help you evaluate benefit levels, coverage duration, and policy features aligned with your needs.Taking these steps early while you are healthy and actively working can help ensure you have options in place when they matter most.
Conclusion
Protecting your ability to earn an income is a critical component of financial planning, particularly for women in STEM careers where expertise and earning potential are significant investments. Disability insurance can help provide stability and peace of mind in the face of unexpected challenges, allowing you to focus on your career, your goals, and your future with greater confidence.
Through the IEEE Member Group Insurance Program, administered in partnership with AMBA, members have access to Group Disability Income Insurance designed specifically for professionals in technical fields. To learn more or discuss your options, speak with a licensed insurance specialist by calling 800-493-4333. A brief conversation can help you better understand your coverage needs and how to strengthen your financial protection.
Consult a tax advisor for details regarding the tax treatment of disability benefits.
For information on features, costs, eligibility, renewability, limitations and exclusions visit ieeeinsurance.com
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