In the most simplest of definitions, disability insurance will help to protect an employee's paycheck.
In the event of an injury, how long would your employees be able to get by without a paycheck before they would experience a financial hardship? If you ask your employees this question, you may learn that they would be in financial distress after missing just one month's paycheck. These are ideal candidates for disability insurance.
While disability insurance can provide your employees some peace of mind, there are a number of objections that people have that prevent them from getting on board with this type of insurance. Here are 3 of the most common objections that you may hear from employees:
1. "I'm young and healthy, so why would I need disability insurance?"
You never know when an accident is going to strike, and it can happen to you regardless of your age, health status, or fitness level. According to a study conduced by Life Happens, employees actually have a 3 in 10 chance of having an accident that keeps them out of work for 90 days or more at some point throughout their careers. If this happened, would these employees be able to get by financially?
2. "I don't need disability insurance because I could rely on government benefits."
For those that are counting on social security benefits to offer some financial relief if an injury were to occur, they should know that social security only pays out an average of $1,100 per month, which is basically living at poverty level. The social security check for younger employees is even lower, averaging approximately $700 per month.
3. "I live a very low-risk lifestyle, so it's very unlikely that I would encounter an injury that would keep me out of work for an extended period of time."
It may surprise some employees that injuries aren't the leading cause of disability claims. Instead, the majority of claims come from musculoskeletal and connective tissue disorders like arthritis and sciatica. Cancer is a close second for the largest number of disability claims.
As an employer, by giving your employees the option to purchase disability insurance, you'll be able to demonstrate that you're looking out for their financial well-being. Since many employees don't have a full grasp on what disability insurance is and how it can protect them, this is a great topic to cover in your employee benefits education.
Please contact us at Summerlin-Roberts to learn more about disability insurance and how it can help your employees.