A recent study by the Consumer Federation of America (CFA) spotlights the value of employer sponsored disability coverage in helping meet the health and financial well-being of workers.
According the Social Security Administration, one in every four employees will use their disability coverage at some point.
Despite this need, the nationwide survey found that fewer than two in five workers (39%) in the private sector have short-term disability (STD) coverage through their employers and only one in three (33%) have employer sponsored long term disability coverage (LTD).
Studies by the U.S. Bureau of Labor Statistics and Mathew Greenwald & Associates have found similar rates of participation in these programs.
CFA Executive Director Stephen Broback says, “Surveys have shown that disability insurance is a critically important part of the social safety net”. . . “that plays an essential role in protecting the emotional and financial lives of workers.” Based on the study’s findings, he urged “all employers to offer the option of obtaining disability coverage.”
The survey also found that when businesses don’t offer LTD, many workers would buy it for themselves if they could receive the lower group rates available through employer sponsored coverage. Most disability plans cost workers between $10 and $30 per month, and the average monthly premium for STD coverage comes to $18.
More and more employees are benefiting from these plans, an estimated 650,000 disabled workers received employer sponsored LTD payments last year.
If you’d like to offer your employees this valuable “peace of mind” benefit, or for a complimentary review of your disability plan,– feel free to get in touch with us at any time. It’s our pleasure to serve you.