NU Online News Service, Nov. 7, 8:57 a.m. – Disability insurance and what it covers remain a mystery to many full-time employees, according to a recent national survey by MetLife Inc., New York.
The product replaces a portion of an employee’s income if he or she is unable to work because of injury or illness.
More than half of full-time employees have done no specific planning for their financial security and protection in the event of a disability, according to the survey.
Of employees who have disability insurance coverage, only 52% overall believe that their coverage provides adequate protection. This percentage is even lower for women, according to the survey.
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Twenty-seven percent of women between 21 and 39 who are full-time employees do not think that maternity is covered while 45% are not sure.
“The findings of this survey are a strong wake-up call for the need to increase disability benefits education for employees,” says Maria Morris, vice president of MetLife’s group disability operations.
Although women account for almost two-thirds of group short-term disability insurance claim volume, only 43% of women feel that their disability coverage provides adequate protection.
More than one-third of women admit they simply don’t know how to determine adequate coverage amounts.
Advisors who sell group coverage can help employers evaluate the current level of knowledge their employees have, Morris says.