[May 02, 2016] |
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Disability Insurance: Research from Lincoln Financial Group Shows Gaps in Consumer Need vs. Knowledge
Research from Lincoln Financial Group shows that American employees are
worried about the unknown when it comes to health, and specifically, the
financial implications that could stem from an unexpected illness or
injury. Disability insurance - used to replace or supplement income if
an employee is out of work due to a disabling health issue - could help
alleviate some of those fears, but it may be overlooked by employees due
to lack of knowledge.
According to the Lincoln Financial Special
Report: M.O.O.D. (Measuring Optimism, Outlook and Direction) of America
on Employee Benefits, just 18 percent of employees feel very
confident that they could cover expenses if they were to encounter
serious illness or injury. And, Americans are worried about
health issues. Just about half of American employees say cancer is their
top health concern. In addition, one employee in every three is
concerned about heart attacks and chronic illnesses.
The study shows that just 67 percent of employees who are offered
disability insurance through the workplace actually enroll. More
familiar nonmedical benefits, such as life insurance and dental, boast
enrollment rates of 81 percent and 90 percent, respectively. The
one-third of employees eligible for disability coverage who choose not
to enroll commonly say that "it's unnecessary right now."
"Disability insurance can seem abstract, and many don't fully understand
the protection it can provide. But the ability to earn an income is
often the primary source of financial security for an individual or
family," said Eric Reisenwitz, senior vice president for Group
Protection Product and Operations at Lincoln Financial Group. "We insure
our homes, our cars, and ourselves. Why wouldn't we insure our income?"
Education is the Key
95 percent of American employees are more likely to enroll in benefits
they feel 'familiar with and educated about,' but when it comes to
disability insurance, just 30 percent say they know a lot about i.
"Employees need more education to truly get the most of benefits offered
through the workplace," Reisenwitz said. "May is Disability Insurance
Awareness Month - an excellent time to help employees understand the
value of this coverage, which is often right at their fingertips."
Click
here to learn more about the importance of nonmedical benefits -
such as disability insurance - to overall financial security.
For related infographics, visit
this link.
About the Special Report: M.O.O.D. of America on Employee Benefits
Results for the Special Report: M.O.O.D. of America on Employee Benefits
are based on a national survey of employees conducted by Whitman Insight
Strategies (WINS) on behalf of Lincoln Financial Group. The research was
conducted in early February 2015, among 933 employed adults ages 22 to
69. Data shown in this report is weighted to reflect the proportion of
U.S. employees by gender, age, region, race and ethnicity, based on data
from the Bureau of Labor Statistics and the U.S. Census Bureau. The
margin of error is +/- 3.1% at the 95% confidence interval for the
entire sample.
About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help empower
Americans to take charge of their financial lives with confidence and
optimism. Today, more than 17 million customers trust our retirement,
insurance and wealth protection expertise to help address their
lifestyle, savings and income goals, as well as to guard against
long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln
Financial Group is the marketing name for Lincoln National Corporation
(NYSE:LNC) and its affiliates. The company had $219 billion in assets
under management as of December 31, 2015. Learn more at: www.LincolnFinancial.com.
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View source version on businesswire.com: http://www.businesswire.com/news/home/20160502005179/en/
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