Part of our guide: Disability Income Insurance: Solutions, Tools and Guides →
Disability insurance protects against income lost to the insured’s own illness or injury. But what if a client has to cut back at work to care for a seriously ill child, spouse, or parent? Some policies now cover that too.
Key takeaways
- More than 60 million U.S. adults provide care to a loved one, often while working.
- A compassionate family care benefit, included at no extra cost on some individual DI policies, helps replace lost income.
- One carrier uses a 20/20 guideline: benefits are payable when the client works 20% fewer hours and loses 20% or more of income.
The 20/20 guideline: work 20% fewer hours to care for a family member, lose 20% or more of income, and the benefit can pay.
The caregiving reality
Tens of millions of working adults care for a family member. Many have to cut hours or take time off, losing income just when expenses rise. Traditional disability insurance doesn’t address that, because the insured isn’t the one who is sick.
How the family care benefit works
At one carrier, the benefit is included with an individual DI policy at no extra cost. After a benefit waiting period, it pays if the insured works 20% fewer hours and loses 20% or more of income because they’re caring for a family member with a serious health condition.
Who and what qualifies
- Family members: parent, spouse, domestic partner, or child (including adopted and stepchildren).
- Serious health condition: the family member is receiving inpatient hospital, hospice, or residential medical care; needs substantial supervision due to severe cognitive impairment; can’t perform two or more activities of daily living; or is terminally ill with life expectancy of 12 months or less.
- The condition must begin after the policy’s effective date, and documentation of income and the family member’s condition is required.
Terms vary by carrier and state.
Why it matters in the sale
It’s a feature most clients have never heard of, and one that resonates with anyone who has cared for a parent or child. It also pairs naturally with long-term care planning conversations.
Frequently asked questions
Does disability insurance pay if I care for a sick family member?
Some individual DI policies include a family care benefit that pays when you lose income caring for a seriously ill family member.
What is the 20/20 rule for the family care benefit?
At one carrier, benefits are payable when the insured works 20% fewer hours and loses at least 20% of income due to caregiving.
Which family members qualify for the family care benefit?
Typically a parent, spouse, domestic partner, or child, including adopted and stepchildren.
Reviewed by Tim Fuller on 2026-09-25
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.
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.
