Workers misunderstand income needs during disability

BenefitNews.com

American workers are in the dark about how to manage their income if they become unable to work due to a disability, a new UnumProvident and Harris Interactive poll of 1,700 U.S. adults reveals.

A whopping 97% of workers think leaving the job for a disability should require some level of income replacement, but only 37% have disability coverage. What’s more, among those who are covered, 37% do not understand that the insurance would replace part of their income and assist with monthly expenses.

Workers also appear out of touch with just how much disability insurance will cover. Forty-seven percent felt income replacement for a year or less was satisfactory. Studies show 1 in 3 disabled individuals will miss at least three months of pay. After being inactive for ninety days, the average length of disability is two years. Disability insurance prepares workers for the financial fallout from a disabling illness or injury and protects workers with planned leaves, such as surgery or maternity leave.

“This research points to a clear disconnect,” says Mike Simonds, senior vice president of product development and marketing for UnumProvident. “Workers understand that some level of disability income protection is necessary, but nearly two-thirds of these workers remain uninsured. Given such a clear need, today’s employers are missing a hidden gem for their benefits packages, and workers are overlooking a key aspect of financial planning.”

Similar / Related:

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• Court to hear case that could help workers claim benefits
• Disability Income Benefits: The Complex Application Process
• UnumProvident suggests key strategic steps for FMLA benefits management
• Prudential has strategies to reduce Long Term Disability claim payments

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