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Thread: Your Disability Income Insurance Coverage May Be Far Less Than You Expect, Survey Finds

  1. #1

    Your Disability Income Insurance Coverage May Be Far Less Than You Expect, Survey Finds

    Your Disability Income Insurance Coverage May Be Far Less Than You Expect, Survey Finds

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    Format for PrintingPR Newswire - August 08, 2002 05:07

    SPRINGFIELD, Mass., Aug. 8 /PRNewswire/ -- Many consumers overlook their disability income insurance coverage and needs when evaluating their employee benefits -- which can be a mistake.

    Almost 90 percent of employees only review their benefits package once a year or when they need to file a claim according to a MassMutual Benefits Barometer Survey, conducted July 2002.

    According to the online survey of benefit administrators almost half of all employees fail to realize or are unaware that only a portion of their salary (approximately half after taxes) is covered by their group long-term disability (LTD) plan. Less than one-third of employers offer both group and supplemental individual disability income insurance. This information and coverage gap can significantly impact a family's ability to pay monthly expenses in the event of a disability. (See www.halfapaycheck.com)
    "Many employees think that their health insurance, group plans, Social Security and savings will get them through a disability. What they avoid considering is that nearly half of one million Americans who filed for bankruptcy protection did so after sickness or injury," said Larry Hazzard, assistant vice president of marketing at MassMutual.

    To help educate employers and employees alike that group LTD income insurance plans typically cover approximately half of an employee's salary after taxes, MassMutual conducted an online survey. The results reflect an important reality -- employers and employees alike need to be educated.

    "Late fall is typically the time when benefit managers distribute information for employees to review, re-evaluate and select company-sponsored benefits," says Hazzard. "We hope that before people apply for employee benefits that they use available self-assessment tools - including the online calculator we developed -- to find out just how much disability income insurance protection they have, compared to how much they truly need."

    MassMutual's online self-assessment tools are designed to help employees compare their coverage and financial situation to their needs. What the majority may be surprised to learn is that while their health insurance will help pay their medical bills, in many cases, their current group LTD plan may not replace enough income during prolonged illness or injury to meet expenses such as mortgage and rent.

    Other Benefits Barometer findings that support the need for enhanced communication include:

    * 53% indicated that employee satisfaction and recruitment is the key
    consideration for offering supplemental benefits such as individual
    disability income insurance.

    * 39% of benefit administrators said their employees might consider
    meetings to be the best tool for learning about company-sponsored and
    voluntary benefits, followed by 23% who believe that the company
    intranet works best.

    * Only 26% of companies offer employees information and/or benefits
    selection via the Internet or a related online tool.

    * 30% of benefit administrators cite rising benefit costs and the economy
    as key considerations for offering supplemental benefits such as
    individual disability income insurance.

    The MassMutual Benefits Barometer Survey was completed online. To view complete Benefits Barometer survey results and obtain more information on MassMutual's supplemental disability income insurance for employers and employees, please visit

  2. #2
    Good article Seneca. Important material for anyone who works.

    I had a baptism by fire and learned alot about the world of LTD after my accident.

    Luckily I had planned for the worst.

    Onward and Upward!

  3. #3
    Senior Member ChesBay's Avatar
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    Nov 2001
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    LTD

    Last july I took a fall out of my chair and broke my legs up big time. I had two surgeries , rods and hardware put in etc...

    We ( at work) had added Short term and long term disability insurance to our benefits package about 12 months prior to my fall.

    It has been a blessing and I probably would have had to loose my house and be headed for bankruptcy without it.

    It has made me a believer in the importance of disability insurance.
    Paul

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