Part of our guide: Disability Income Insurance: Solutions, Tools and Guides →
Clients who’ve maxed out their disability insurance coverage often assume there’s nothing left to add — but their retirement contributions could still be left completely unfunded if they got sick or hurt. Here’s how DI Retirement Security (DIRS) closes that specific gap.
Key takeaways
- Retirement contributions themselves aren’t required to qualify for DIRS.
- Benefits are non-taxable when the client pays the premium themselves.
- Elimination periods of 180 or 365 days and benefit periods to age 65 or 67 make DIRS flexible to a client’s existing DI structure.
DIRS pays up to 15% of earned income toward retirement contributions during a disability — available to anyone earning at least $76,000 in a qualifying occupation class, even on top of maxed-out individual DI.
Who qualifies
DIRS provides coverage that helps individuals continue making retirement contributions if they become unable to work due to disability. Since retirement contributions themselves aren’t required to qualify, any individual in a qualifying occupation class (Class A through 5A Select) earning at least $76,000 per year can apply. Coverage doesn’t diminish eligibility for regular individual DI insurance either — a client can qualify for DIRS even if they already carry a regular individual DI policy up to the maximum issue and participation limits.
How the benefit is structured
If the insured becomes disabled beyond the policy’s elimination period, DIRS pays into a trust rather than directly to the client, and at the end of the benefit period, trust assets are distributed to the insured per the trust agreement’s terms. Benefits are non-taxable if the insured pays the DIRS premium themselves; they’re taxable if an employer pays the premium and it isn’t treated as income to the employee.
Key features
Coverage provides a maximum benefit up to 15% of earned income, subject to a monthly benefit cap that’s periodically updated, with a minimum benefit requirement of $1,000 per month. Available elimination periods are 180 or 365 days, and benefit periods run to age 65 or 67, with “Your Occupation” periods of two years, five years, age 65, or age 67. Optional riders include Future Benefit Increase, Cost-of-Living Adjustment, and a Mental/Nervous Substance Abuse Disorder limitation.
If DIRS is written as a stand-alone policy with no other DI coverage applied for or in force, simplified underwriting guidelines can apply, making it a straightforward addition even for clients who haven’t gone through full DI underwriting.
For more information, including current benefit caps and case design for a specific client, contact your disability income insurance specialist today.
Frequently asked questions
Who is eligible for DI Retirement Security?
Any individual in a qualifying occupation class, Class A through 5A Select, earning at least $76,000 per year, regardless of whether they already carry a regular individual DI policy.
Are DIRS benefits taxable?
Benefits are non-taxable if the insured pays the premium themselves. They’re taxable if an employer pays the premium and it isn’t treated as income to the employee.
Reviewed by Tim Fuller on 2026-09-23
Tim Fuller
President, SRS Inc.
Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency) connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners — with the impaired-risk and complex-case expertise to place business other IMOs and BGAs turn away.
Connect on LinkedIn →We’re Here to Help
Have a question about what you just read, or a case you’re working on? Tell us a bit about what you need, and a member of the SRS team will follow up with you personally — no obligation, no hassle.
