But why is it news?
Insurance and employee benefits may not sound like the stuff dramatic news stories are made of, but these products often are the main protection families and individuals have against the potentially devastating financial impact of illness or injury. Read here about personal finance and business story angles, along with background information on Unum's role in helping to protect the financial security of millions of people.
Without a net
The average savings rate in America has dipped to zero, a level not seen since the Great Depression.
[1] This degree of financial vulnerability means the average worker doesn't have the economic safety net they would need if they were hurt or sick and missed work.
Half of bankruptcies are due to illness, injury and medical bills. [2] Disability insurance is an affordable way to protect families from the economic fallout of illness or injury.
Oh, baby
Maternity leave was Unum's leading reason for short term disability leave in 2007, accounting for 21 percent of claims. The Family Medical Leave Act requires employers to hold jobs for employees who miss work because of illness, injury or maternity leave, but the law doesn't require employers to pay workers during the absence. For many women in the workforce who do not have disability coverage, time at home with a new baby means time without a paycheck.
Much misunderstood
Many people believe Social Security Disability or Workers Compensation will provide them an income if they are hurt or ill and cannot work. But
Social Security is only for the most seriously, long-term disabled, and Workers Compensation only covers injuries that occur on the job. In 2004, only 37 of 100 initial applications for Social Security Disability were approved.
[3] And about
two-thirds of all disabling injuries suffered by American workers occur off the job and are not covered by workers' compensation. [4]
It won't happen to me
Statistics show otherwise. In a year's time, the chances are one in 96 that you will need your fire insurance.
[5] But over your working life
the odds are one in three that you will be disabled by an illness or injury for 90 days. [6] Many people buy life insurance so that if they die, their families will have a way to pay the mortgage. However, the odds of mortgage foreclosure due to disability are 16 times greater than the risk of foreclosure due to death.
[4]
Taking care of business
Owning a business is a dream come true for many people, but a small business is dependent on your ability to work. Disability insurance can help a small business owner gain peace of mind in case they become disabled, and Unum offers benefits solutions designed especially for smaller businesses.
Taming turnover
A bountiful benefits package may be the key to employees' hearts. According to a June 2006 survey by the Society for Human Resource Management (SHRM), employees ranked compensation and benefits as the top two factors required for job satisfaction.
Thinking long term
If you think long term care insurance is something for the golden years, think again. With
37 percent of long term care services being used by people under 65 [7], it's easy to see why people should consider it sooner. Need another reason? A year in a nursing home costs an average of $70,000.
[8]
The caregiver connection
As the sandwich generation finds themselves caring for children and parents simultaneously, workplace productivity will take a hit and absenteeism will continue to rise. How is this affecting employers? How can offering a long term care insurance policy to employees help?
In their hands
Employees are increasingly responsible for choosing and paying for the benefits they receive through work. Squeezed by rising health care costs, employers are looking to their employees to foot more of the benefits bill. That means employees need to be benefits experts, and Unum has transformed its benefits education to meet that growing need.
Every autumn
If it's fall, it must be benefits enrollment time. This annual rite of business passage presents an ideal time for workers to evaluate their compensation, savings and insurance. Where are the gaps in the financial safety net? Have coverage needs changed over the past year through marriage, divorce, birth of a child? How do you adjust coverage? How can your employer help?
Filling the gaps
Just because you have health insurance doesn't mean you're protected from overwhelming medical bills. In a Harvard study,
people who filed for bankruptcy due to medical expenses reported average out-of-pocket health care costs of $13,460, even though they had health insurance at the onset of their illness.
[9] Critical illness, accident and MedSupport insurance can help cover the expenses that come with illness or injury.
A guide to coverage
Not all insurance policies are built the same, and not everyone needs the same kinds of coverage. What coverage is right for new graduates? Young families? Workers considering retirement? Give your readers tips for selecting disability, long term care and life insurance policies that serves them well now and in the future.