Survey: Just 4 In 10 Employees Protecting Income With Disability Coverage

Roughly 4 in 10 working Americans (41%) report they have employer-sponsored disability insurance coverage, according to a new survey conducted online by The Harris Poll on behalf of OneAmerica^®.

However, less than one quarter of working Americans (24%) elect to have voluntary disability insurance through their employer ─ where employees have to pay for coverage themselves ─ leaving many without this key paycheck protection.

This new survey of short-term or long-term disability insurance coverage was conducted among 1,017 U.S. adults ages 18 and older who are employed full-time or part-time.¹

Disability Insurance Awareness Month is observed annually in May. OneAmerica uses the survey results to help educate consumers and to challenge assumptions.

The Harris Poll-OneAmerica survey was conducted April 18-22, 2019.

Of the 64% of working Americans who report not having voluntary disability coverage, just under half (47%) say it is because their employer does not offer it; among them, nearly 3 in 5 (58%) say if their employer was to offer it, they would be likely to purchase it.

“It is important to understand the current environment related to employee disability coverage,” said Nathan Queen, OneAmerica regional vice president, southern region. “Our snapshot affirms established industry studies that too few employees elect or have access to disability coverage, a benefit we believe to be a cornerstone of financial well-being in their benefits package.”

Those who do not have voluntary disability coverage through their employer cite the following as additional reasons for not selecting coverage:

• Don’t see the value (14%)
• Other obligations or expenses they feel are higher priorities (11%)
• Can’t afford coverage (12%)
• They think they are healthy and don’t need it (12%)

A recent study by LIMRA and Life Happens looked at behaviors that prevent workers from purchasing life insurance and related coverage, such as disability.² LIMRA and Life Happens stated that unless workers understand what it is, and more importantly why they—personally—need it, they won’t be motivated to buy the coverage.

“Our goal is to further the dialogue about the value of disability coverage, so all employees can understand that insuring their paycheck is the catalyst to protecting everything else in their lives, including their homes, their cars and their family,” Queen added.

OneAmerica focuses on the core financial wellness products of group life and disability insurance. OneAmerica has recorded double-digit sales growth in Employee Benefits for five consecutive years.

About OneAmerica^®

A national leader in the insurance and financial services marketplace for more than 140 years, the companies of OneAmerica help customers build and protect their financial futures. OneAmerica offers a variety of products and services to serve the financial needs of their policyholders and customers. These products include retirement plan products and recordkeeping services, individual life insurance, annuities, asset-based long-term care solutions and employee benefit plan products. Products are issued and underwritten by the companies of OneAmerica and distributed through a nationwide network of employees, agents, brokers and other sources who are committed to providing value to our customers. To learn more about our products, services and the companies of OneAmerica, visit oneamerica.com/about-us/companies-of-oneamerica

OneAmerica^® is the marketing name for the companies of OneAmerica. Products issued and underwritten by American United Life Insurance Company® (AUL), Indianapolis, IN, a OneAmerica company.

Harris Insights & Analytics is not an affiliate of the companies of OneAmerica.

¹ This survey was conducted online within the United States by The Harris Poll on behalf of OneAmerica from April 18 - 22, 2019 among 1,017 U.S. adults ages 18 and older who are employed full-time or part-time. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Tom Spalding at 317-656-7644.

² The Insurance Barometer is an annual study that tracks the perceptions, attitudes and behaviors of adult consumers in the United States. In January 2019, LIMRA and Life Happens engaged an online panel to survey adult consumers who are financial decision makers in their households. The survey generated over 2,000 responses. Models used in the sample development include a propensity model to adjust for sample selection error, and weighting models to adjust for sample response error. Read more: http://bit.ly/2019study