What percentage of U.S. workers lack disability insurance according to Unum?

According to Unum, 55% of U.S. workers do not have disability insurance.

What is the significance of Baby Boomers regarding disability claims?

Baby Boomers account for 47% of all long-term disability claims, yet 70% of them lack coverage.

How much income does disability insurance typically replace?

Disability insurance generally replaces 60-70% of a worker's income if they become sick or injured.

What chance do workers have of suffering a disability before retirement?

Workers have a 1 in 4 chance of experiencing a disability before retirement.

What are common reasons workers forgo disability insurance?

Common reasons include feeling healthy (33%), affordability issues (29%), and lack of understanding about coverage (10%).

Unum finds more than half of U.S. workers forego disability insurance, leave income at risk

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Unum's recent study reveals that 55% of U.S. workers lack disability insurance, a critical safeguard for their income. Notably, 70% of Baby Boomers are without this coverage, despite representing 47% of long-term disability claims. Many cite reasons such as feeling healthy (33%), affordability concerns (29%), and lack of awareness (10%). With a 1 in 4 chance of facing disability before retirement, and amid the ongoing pandemic, the importance of income protection is underscored. Disability insurance typically replaces 60-70% of lost income, emphasizing its value for financial security.

Positive

Unum's report highlights the critical need for disability insurance, potentially positioning the company as a leader in disability income protection.
The report shows a significant market opportunity, as many workers recognize the need for coverage after filing claims.

Negative

A large percentage (55%) of the workforce lacks disability insurance, indicating a general market awareness issue that may affect sales.
The reasons for not obtaining insurance (e.g., health perception, affordability) may pose challenges for Unum in promoting its products.

09/11/2020 - 02:15 PM

CHATTANOOGA, Tenn., Sept. 11, 2020 /PRNewswire/ -- More than half (55%) of U.S. workers don't protect their income with disability insurance. Seven out of 10 Baby Boomers also forego this coverage,¹despite being more likely to need it. This generation makes up nearly half (47%) of all long term disability claims,²according to internal claims data from Unum (NYSE: UNM), a leading provider of disability insurance.

Experience the interactive Multichannel News Release here: https://www.multivu.com/players/English/8691552-unum-disability-insurance/

"People are more likely to protect their homes, phones, or cars than their most important asset: their income," said Chris Pyne, executive vice president of Group Benefits at Unum. "But without a paycheck, they likely wouldn't even have these other assets."

As for why people lack the protection, a third of workers (33%) say they're healthy and don't need it, 29% say they can't afford it, 11% don't see the value in it, and 10% don't know what it covers.¹ Of those who had to file a disability claim within the past five years, 99% were glad they had disability coverage.

Workers have a one in four chance of suffering a disability before they retire, according to the Council for Disability Awareness.³Today, those chances could be higher with nearly 6 million confirmed cases of COVID-19 as of August 2020.^⁴ The unpredictable coronavirus pandemic underscores the need for disability protection.

Disability insurance replaces a portion of a worker's income if they are sick or injured and unable to work. It typically replaces 60 to 70% of an employee's paycheck, depending on the policy, and is usually the most affordable when purchased through the workplace.

"Choosing your benefits and deciding to enroll in disability insurance is one of the most important financial decisions you'll make in a year," Pyne added. "It's a safety net should you get sick or injured and not be able to work and earn an income."

For more information on disability insurance, including common drivers of disability, tips and best practices for HR professionals in managing disability within their workforce, download a disability guide at unum.com/disability-guide-2020.

About Unum
Unum Group provides a broad portfolio of financial protection benefits and services through the workplace, and is the leading provider of disability income protection worldwide. Through its Unum US, Unum UK, Unum Poland, and Colonial Life businesses, the company provides disability, life, accident, critical illness, dental and vision benefits that protect millions of working people and their families. Unum also provides leave and absence management services that streamline the leave experience for employers and employees, and stop-loss coverage to help self-insured employers protect against medical costs. Unum reported revenues of $12 billion in 2019 and paid $7.5 billion in benefits.

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¹ Unum "Consumer Disability Study" (2020) August 2020, administered by Dynata among 1,000 working U.S. adults and 400 working U.S. adults who filed a disability claim within the past five years.
² Unum, Internal claims data, 2019
³ Council for Disability Awareness, "The Crisis of Disability Coverage in America" (2018), https://disabilitycanhappen.org/disability-statistic/ accessed August 2020
⁴ Center for Disease Control & Prevention "Coronavirus Disease 2019: Cases in the U.S." (2020), https://www.cdc.gov/coronavirus/2019-ncov/cases-updates/cases-in-us.html, accessed August 2020