Group disability insurance is rarely the first benefit that employers ask for when creating an employee benefits plan. Many employers have misconceptions about disability insurance and need education about the value of the coverage.
Here are 3 common misconceptions about group disability insurance and how producers can overcome those misconceptions.
Misconception No. 1: My employees have good medical coverage. They don’t need disability insurance.
While a good medical plan is important, it does not help employees or their families deal with the entire financial impact of an illness. If employees are unable to work while ill, medical insurance will cover all or a portion of their medical bills. But employees may not have any of the normal income that they depend upon to meet monthly financial obligations such as mortgage, car and insurance payments.
Disability insurance can be a lifeline in these situations since it replaces a portion of employees’ weekly or monthly income, typically 60% or more, to help them maintain their lifestyle while they are unable to work due to a covered illness, injury or pregnancy.
Misconception No. 2: Disabilities aren’t very common and probably won’t affect my employees.
Disabilities are more common than many people think. Consider these statistics:
o Disabilities affect one-fifth of Americans–over 49 million people.
o Over 21 million Americans have a condition limiting basic physical activities, such as walking, climbing stairs, reaching, lifting or carrying.