Press Release

Unum finds more than half of U.S. workers forego disability insurance, leave income at risk

Company Release - 9/11/2020 2:15 PM ET

CHATTANOOGA, Tenn., Sept. 11, 2020 /PRNewswire/ -- More than half (55%) of U.S. workers don't protect their income with disability insurance. Seven out of 10 Baby Boomers also forego this coverage,1 despite being more likely to need it. This generation makes up nearly half (47%) of all long term disability claims,2 according to internal claims data from Unum (NYSE: UNM), a leading provider of disability insurance.

Experience the interactive Multichannel News Release here: https://www.multivu.com/players/English/8691552-unum-disability-insurance/

"People are more likely to protect their homes, phones, or cars than their most important asset: their income," said Chris Pyne, executive vice president of Group Benefits at Unum. "But without a paycheck, they likely wouldn't even have these other assets."

As for why people lack the protection, a third of workers (33%) say they're healthy and don't need it, 29% say they can't afford it, 11% don't see the value in it, and 10% don't know what it covers.1 Of those who had to file a disability claim within the past five years, 99% were glad they had disability coverage.

Workers have a one in four chance of suffering a disability before they retire, according to the Council for Disability Awareness.Today, those chances could be higher with nearly 6 million confirmed cases of COVID-19 as of August 2020.4 The unpredictable coronavirus pandemic underscores the need for disability protection.

Disability insurance replaces a portion of a worker's income if they are sick or injured and unable to work. It typically replaces 60 to 70% of an employee's paycheck, depending on the policy, and is usually the most affordable when purchased through the workplace.

"Choosing your benefits and deciding to enroll in disability insurance is one of the most important financial decisions you'll make in a year," Pyne added. "It's a safety net should you get sick or injured and not be able to work and earn an income."

For more information on disability insurance, including common drivers of disability, tips and best practices for HR professionals in managing disability within their workforce, download a disability guide at unum.com/disability-guide-2020.

About Unum
Unum Group provides a broad portfolio of financial protection benefits and services through the workplace, and is the leading provider of disability income protection worldwide. Through its Unum US, Unum UK, Unum Poland, and Colonial Life businesses, the company provides disability, life, accident, critical illness, dental and vision benefits that protect millions of working people and their families. Unum also provides leave and absence management services that streamline the leave experience for employers and employees, and stop-loss coverage to help self-insured employers protect against medical costs. Unum reported revenues of $12 billion in 2019 and paid $7.5 billion in benefits.

For more information, connect with us on Facebook, Twitter and LinkedIn.




1 Unum "Consumer Disability Study" (2020) August 2020, administered by Dynata among 1,000 working U.S. adults and 400 working U.S. adults who filed a disability claim within the past five years.

2 Unum, Internal claims data, 2019

3 Council for Disability Awareness, "The Crisis of Disability Coverage in America" (2018), https://disabilitycanhappen.org/disability-statistic/ accessed August 2020

4 Center for Disease Control & Prevention "Coronavirus Disease 2019: Cases in the U.S." (2020), https://www.cdc.gov/coronavirus/2019-ncov/cases-updates/cases-in-us.html, accessed August 2020

 

According to 2019 Social Security Administration data, 1 in 4 of today’s workers will become disabled before they reach retirement. Disability insurance can help provide financial protection.

 

Disability coverage through the workplace is typically much less expensive than buying a private policy. Participating as part of a group is often the only way employees can qualify for coverage.  (Source: Unum Disability Guide 2020)

 

An effective return-to-work strategy and dedicated mental health support from disability providers can reduce the likelihood of a short-term disability claim advancing to a long-term disability claim.  (Source: Unum Disability Guide 2020)

 

Auto-enroll can help nudge employees in the right direction while preserving their freedom to choose.  (Source: Unum Disability Guide 2020)

 

Unum claims data showed that at the height of the pandemic (April 2020) in April, more than a third of Unum’s short-term disability claims were for COVID-19.  (Source: Unum Disability Guide 2020)

 

Unum_Group_Logo

 

Cision View original content:http://www.prnewswire.com/news-releases/unum-finds-more-than-half-of-us-workers-forego-disability-insurance-leave-income-at-risk-301128484.html

SOURCE Unum

Copyright 2020, © S&P Global Market Intelligence|Terms of Use
|Sitemap

©2020 Unum Group. All rights reserved.

|Legal|Privacy|Accessibility|Do Not Sell My Personal Information