Clearing Up Prospects Confusion

o On average, about 2,329 disabling injuries occur every hour during the year. (National Safety Council, 2003 Injury Facts.)

o At age 35, a person has a 50% chance of being unable to work for more than 3 months due to a disability before age 65. (Society of Actuaries, as referenced in Money magazine, April 2000.)

Employers may not realize that group disability insurance policies don’t just provide income replacement for injuries or illnesses but also for common events such as pregnancies. When they consider the likelihood that their valued employees may become disabled during their working years, employers will be more inclined to consider adding a group disability policy to their employee benefits plan.

Misconception No. 3: Disability insurance is too expensive.

Producers need to arm themselves with the facts. Group disability insurance premiums are quite low. Yet disability insurance can provide much needed income for employees at a critical time in their lives.

According to LIMRA International, Windsor, Conn., the premium per certificate for new sales of long-term disability insurance averaged $207 in 2004. For short-term disability insurance, the average was $184. Compared to the thousands of dollars in premiums that employers typically pay per employee for medical insurance premiums, disability insurance can provide a considerable benefit for a low cost.

Equipped with the information they need to dispel employers’ misconceptions about disability insurance, producers can initiate conversations with their clients about adding STD or LTD coverage to their employee benefits plans.

Jane Hood is vice president of marketing in the employee benefits division at Standard Insurance Company, Portland, Ore. She can be reached at [email protected].