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Survey: Small employers not sure about the business value of disability

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Disability insurance marketers may have room to increase small employers’ belief in the idea that offering long-term disability (LTD) insurance can improve operations.

Analysts at the Consumer Federation of America (CFA) and Unum Group Corp. (NYSE:UNM) have presented data supporting that argument in a summary of results from a recent survey of about 500 benefits decision makers at employers with 10 to 99 employees.

The analysts found evidence that employers are aware of the shaky state of many workers’ finances.

About 94 percent of the employers disagreed with the statement that, “Most employees have enough savings to cover normal living expenses if they become unable to work due to illness.”

About 51 percent agreed that a primary reason to offer LTD is because “it is what a responsible employer does,” and 56 percent agreed that offering LTD is a way to “demonstrate [that] you care about your employees.”

But the analysts found that just 19 percent agreed that a primary reason to offer LTD is “to improve productivity and get employees back to work faster,” and just 30 percent named improving productivity as a secondary reason to offer LTD.

The only reason to offer LTD that ranked lower was, “Your benefits broker or consultant recommended it.”

See also: Unum: Disability benefits help people keep their homes


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