Employers have consistently had to pivot and adjust their benefits to accommodate employees’ everchanging lifestyles and healthcare needs. Because of this, employee benefits have strengthened the relationship between the organization and employees.
Disability insurance is an employee benefit that provides valuable income protection when employees are faced with unexpected physical or mental health demands. This benefit has gained a great deal of attention and has become a powerful tool within the employee benefits landscape. On the other hand, this type of insurance can often be misunderstood, underutilized, or ignored.
According to a survey by Bankrate, only 39% of Americans can afford an unexpected expense of $1,000. In addition to this statistic, one in four adults will become disabled in their lifetime according to data from the Council for Disability Awareness. This explains why employees are turning to their employers for valuable resources, support and education that go beyond payroll and a 401(k).
“Disability insurance is just as important as [life insurance]. It’s one of the most important benefits an individual can have.” — Jessica Gillespie, Senior Vice President and Head of Distribution at Prudential Group Insurance
According to the Society for Human Resource Management, 71% of employers offer long-term disability insurance and 61% offer short-term disability insurance. The key to helping both employers and employees understand and take advantage of disability insurance is education, explained Gillespie. The value of spending the necessary time to understand your workforce and to tailor education and solutions that fit that population cannot be understated.
As 2021 continues, it is essential for employers to do their best in understanding the benefit needs of their employees to keep their organization engaged, safe and healthy and the morale of the company up. Additionally, it is just as important for employees to seek out what is essential to maintain a healthy lifestyle and promptly communicate benefit needs.
Information provided by Employee Benefit News.
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