What To Tell Employees About

Voluntary DI Protection

BY

It goes without saying that employees who have been hit with increasing financial responsibility for their benefits packages arent very happy about these increased costs. But the skyrocketing cost of health benefits certainly isnt news to most employees. They know that their companies are struggling with these costs and most simply want their employers to lay out the facts for them.

Voluntary disability income protection is one of those products that can be extremely popular when employees understand the facts. We advise our independent brokers and the human resources departments to which they sell to communicate to employees these 8 reasons to consider voluntary disability income protection:

1. Disability is more common than you think. The likelihood of suffering a serious disability between the ages of 35 and 65 is one in three, according to the American Council of Life Insurers.

2. Disabilities arent just the result of accidental injury. Common chronic health conditions such as back disorders, heart disease and arthritis can limit your ability to work.

3. As you get older, your chances of having a work disability increase. If you are 45, your chances of having a work disability are 3 times as high as someone in their early 20s. By the time you are in the 55 to 64 age group, you have a 23% chance of having a disability that affects your ability to work. (See Chartbook on Work and Disability in the United States, 1998, U.S. Department of Education.)

4. Disability insurance covers you when workers compensation doesnt. It provides income when you are disabled due to a covered sickness or injury. Partial disabilities can be covered, too.

5. Your employer makes it possible for you to purchase this coverage at affordable group rates.

6. You pay for your coverage through easy payroll deductions.

7. You cannot be turned down for this insurance, as long as you are eligible.

8. You dont have to become totally disabled to receive benefits.

Companies that are considering adding voluntary benefits often are concerned about how employees will perceive these benefits: Will employees see them as one more attempt to remove discretionary income from their paycheck?

Offering employers disability coverage enables them to enhance their voluntary benefits in any economic climate. It gives employers a way to provide a better package of benefits while allowing employees to choose a benefit that offers them the income protection they want.

is assistant vice president, strategic partnerships for Reliance Standard Life Insurance Company, Philadelphia, Pa.


Reproduced from National Underwriter Edition, April 9, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.