Principal Joins CDIA to Tackle Disability Income Protection Gap

SOUTH PORTLAND, Maine – November 8, 2025 – In a move signaling a growing industry focus on financial resilience, Principal Financial Group has joined the Council for Disability Income Awareness (CDIA). The partnership aims to bolster education and advocacy surrounding disability income protection, a critical yet often overlooked component of financial planning.

Principal, a global financial services company serving approximately 70 million customers, will work alongside CDIA to raise awareness of the financial risks associated with disability and advocate for increased access to income protection solutions. The announcement comes at a time when experts warn of a widening gap in coverage, leaving millions of Americans vulnerable to financial hardship if they become unable to work due to illness or injury.

“Income protection is essential to financial security, and we look forward to working alongside CDIA members to expand awareness and help more people access the protection they need,” stated Andy Schafer, VP of Workplace Benefits Solutions at Principal, in a press release.

Closing the Protection Gap: A Growing Concern

While many Americans have health insurance, far fewer have adequate disability income insurance. Industry data reveals a significant portion of the workforce lacks coverage, leaving them reliant on limited employer benefits, Social Security, or personal savings if they become disabled. According to recent reports from LIMRA, a leading insurance industry research organization, a substantial percentage of Americans believe they are adequately protected against disability, but are, in reality, significantly underinsured.

“There's a real disconnect between perception and reality when it comes to disability income protection,” explained a financial analyst familiar with the industry. “Many people assume their employer benefits or government programs will cover their income adequately, but that’s often not the case. These programs usually replace only a portion of lost income, leaving a significant financial gap.”

Principal’s Strategic Move: Expanding Market Presence

The partnership with CDIA appears to be a strategic move for Principal, solidifying its position as a leader in the disability income insurance market. With approximately 20,000 employees and a broad portfolio of financial services, Principal has a significant market reach and a commitment to helping customers protect their financial futures.

“Principal sees a clear opportunity to expand its impact in this space,” stated a source close to the company. “Disability income protection aligns perfectly with their mission of providing financial security and building long-term relationships with customers.”

Analysts suggest this partnership isn't just about market share; it's about building brand reputation and demonstrating a commitment to social responsibility. Principal has consistently been recognized for its ethical business practices, earning accolades such as being named one of the 2025 World’s Most Ethical Companies by Ethisphere.

Industry Collaboration: A Vital Step Forward

The partnership between Principal and CDIA is part of a broader trend toward increased industry collaboration in addressing the disability income protection gap. Competitors, such as Prudential and Unum, are also investing in digital innovation and customer education initiatives to raise awareness and improve access to protection.

“It’s encouraging to see insurers working together to address this critical issue,” stated an industry insider. “Raising awareness requires a collective effort, and these partnerships are a positive step in the right direction.”

CDIA, with its membership of over 50 insurers, brokers, and non-profits, plays a crucial role in coordinating these efforts. By providing educational resources, advocating for policy changes, and facilitating industry dialogue, CDIA is working to create a more financially secure future for all Americans.

“We’re thrilled to welcome Principal to the CDIA family,” stated a representative from the Council. “Their expertise and resources will be invaluable as we work to expand awareness and improve access to disability income protection.”

Looking Ahead: The Need for Greater Awareness

While the partnership between Principal and CDIA is a welcome development, experts emphasize that much work remains to be done. Raising awareness of the importance of disability income protection requires a sustained effort from insurers, financial advisors, employers, and individuals.

“People need to understand that disability is not just an issue for older workers,” explained a financial planner specializing in disability insurance. “It can happen to anyone, at any age. Taking proactive steps to protect your income is an essential part of financial planning.”

Ultimately, closing the disability income protection gap requires a fundamental shift in how Americans view financial security. By prioritizing income protection and taking proactive steps to mitigate risk, individuals can safeguard their financial futures and ensure they are prepared for the unexpected.

As Principal and CDIA begin their collaboration, the industry will be watching closely to see how this partnership unfolds and what impact it will have on the financial well-being of millions of Americans.