Only One-Third of Employed Individuals Have Disability Insurance, Per Survey

A new survey conducted online by Harris Poll on behalf of OneAmerica reveals that only a third of employed Americans (34%) reported that they have disability insurance provided by their employer.

This survey of more than 2,100 US adults ages 18 and older was conduced as part of Disability Insurance Awareness Month in May.

Among the reasons why the respondents reported that they don’t have short- or long-term disability insurance by their employer, 43% said that their employer does not offer it; and 14% stated it was because they could not afford it

In addition, a combined 34% stated they didn’t have disability insurance coverage through their employer due to other obligations or expenses they feel are higher priorities (12%), don’t see the value (12%), or say “I am healthy and don’t need it” (14%).

“Our survey illustrates what we know from our personal experience — there are millions of businesses that could offer Americans access to disability insurance, yet too few offer this cornerstone of financial well-being in their benefits package,” states Jim McGovern, senior vice president of Employee Benefits for OneAmerica, in a media release.

The survey also reveals that only 23% of employed Americans with a household income of less than $50,000 per year have disability coverage provided by their employer. And 34% of working women between 18 and 34 who don’t have disability coverage through their employer don’t have it due to a belief they are healthy and don’t need it, which may mean they are ignoring the common practice of using disability insurance to cover a portion of their income during maternity leave, per the release.

“We see a great need for education in the marketplace,” McGovern adds. “People don’t understand what disability insurance is, so they don’t see the need for it. There is a misconception that disability insurance is for the older crowd, for people in high-risk occupations, or for people in poor health. That’s just not the case. Disability insurance is for everyone.”

[Source(s): OneAmerica, PR Newswire]