A growing need
Financial protection benefits have become more important as financial foundations have shifted, government resources have been strained, and costs have climbed. When people need them most, benefits such as disability, accident, critical illness and life insurance protect against financial hardships that can derail their stability.
Preparing and protecting
Few people understand that the average worker has a one in three chance of becoming disabled by injury or illness for six months or more during his or her working life.1 Most of us are unprepared for the consequences of losing an income, even for a short period of time. In fact, 40 percent of working Americans live paycheck-to-paycheck.2 Half of all households could not raise $2,000 in a month if they needed to.3
The most widespread income protections – workers’ compensation, government programs or personal savings – are useful but often insufficient. The average Social Security Disability insurance benefit is only $1,100 a month, and is reserved for disabilities expected to last for at least a year.4 In addition, government programs in the U.S. and U.K are under intense financial pressure. Individuals will need to be more responsible for their own protection.
The value of benefits
Unum benefits can play a major role in addressing the growing need for financial protection for families and individuals, and in taking the pressure off government resources. Private disability benefits save U.S. taxpayers up to $4.5 billion a year and help as many as 575,000 families avoid impoverishment, according to research from Charles River Associates and Unum in 2011.