Workers in this country remain woefully uninsured—and underinsured—when it comes to disability insurance. According to The Hartford, only 49 percent of U.S. employees have short-term disability coverage, and 44 percent own long-term disability coverage. In fact, 100 million Americans aren't protected by private disability insurance, based on Social Security Administration numbers.
So with the need for protection so clear, why are so many employees just not buying it?
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They procrastinate.
Like many types of individual, personal coverage, disability insurance typically is sold rather than bought. Many people postpone making financial decisions such as insurance purchases and won't proactively seek out insurance until they need it or it's too late. However, this indicates a great opportunity for you to initiate the conversation with their employers about the need for disability coverage and to offer options. Workers today still count on their employers to provide access to and information about the majority of their benefits.
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No clear understanding
They don't feel informed enough to make good choices. Insurance decisions aren't always simple ones. Often, people don't understand what type of policy to buy or how much coverage they need, and they worry about making a poor choice. Clearly, employees have a need for accessible, easy-to-understand benefits information from a trusted source. A good benefits communication plan can help solve this problem.
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They have other priorities.
Today's economy has consumers watching their checkbooks more closely. They may be more likely to delay the purchase of additional insurance because they have other financial priorities (a higher-definition TV or the newest tablet computer, perhaps?) or feel they can't afford it. Complemented by benefits education that helps employees understand their financial exposure and needs, disability insurance offered through the workplace can be an affordable option that fits employees' budgets.
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