Disability insurance can be a powerful tool in a benefits program and help support holistic employee well-being. But despite the fact that most employers provide this kind of supplemental benefit — 71% offer long-term disability and 61% offer short-term disability, according to the Society for Human Resource Management — the tool is often misunderstood, underutilized or ignored.
The key to helping both employers and employees understand (and take advantage of) disability insurance is education, says Jessica Gillespie, senior vice president and head of distribution at Prudential Group Insurance.
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“You can’t just lead with the product and the service,” Gillespie says. “You have to lead with the why. That's what's really driving people to look at their benefits and make the proper selections to create that financial wellness overall. Brokers are in a unique position to help communicate the value of disability insurance to employers, particularly as a key component in a holistic benefits plan.”
Americans are notoriously underprepared for a financial emergency: only 39% can afford an unexpected expense of $1,000, according to a survey by Bankrate. And while many workers assume their health is a given, one in four adults will become disabled in their lifetime, according to data from the Council for Disability Awareness. Disability insurance can provide valuable income protection when employees are faced with physical or mental-health needs, even assisting with maternity leave.
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“Disability insurance is just as important as [life insurance],” Gillespie says. “It's one of the most important benefits an individual can have.”
The relationship between employers and employees has been constantly evolving over the years, and the events of 2020 have further accelerated change. Now more than ever, employees are turning to their employers for resources, support and education that go beyond a salary and 401(k). In turn, employers are increasingly relying on brokers to help them provide employees with the tools to support health and wellness.
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“It comes down to education,” Gillespie says. “It's incredibly important as a carrier, it's incredibly important if you're a broker or consultant, to spend that time understanding the employer’s workforce and to tailor education and solutions that fit that population. The goal is to make sure that people understand the benefits solutions that are available to them.”
