As many children return to in-person schooling, it’s important for employers to recognize the millions of parents who were confronted with new stressors amid the pandemic — from conducting remote schooling to having little access to childcare options — on top of the financial pressures brought on by this challenging time.
MetLife’s 2021 U.S. Employee Benefit Trends Study finds that 52% of parents are living paycheck to paycheck, and 48% say they struggle to pay the bills every month.
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Parents should look to focus on their short-term financial goals, in addition to preparing for future financial milestones like retirement or a child’s college fund. To offer support, employers can communicate with their employees about how short- and long-term disability insurance, as well as voluntary benefits, help enhance parents’ financial wellness and provide additional security in the event that they are unexpectedly unable to work.
Disability insurance can help provide parents with the income protection they need to care for themselves and their families. Here are three key ways that disability insurance can help working parents.
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1. Contribute to monthly essentials
While health insurance may help cover medical bills if a parent is sick or injured, the cost of living expenses can still pile up for those who are unable to work. Disability insurance may take some of the pressure off of these everyday expenses by helping to cover the cost of essential needs for parents and their families like food, clothing, utilities, a mortgage, car payments, and more.
This can be a lifeline for parents already struggling to keep on track with the day-to-day costs of caring for themselves and their children. MetLife’s study finds that 64% of employees who own disability insurance report being financially healthy, compared to 57% of those who don’t.
2. Help protect long-term savings
For employees put out of work, reaching long-term financial goals like retiring on time or putting a down payment on a home can feel challenging, if not impossible. This is particularly a concern for parents, many of whom already feel behind on their finances. In fact, according to MetLife’s study, 52% of parents expect to postpone their retirement due to their financial situation.
Thankfully, disability insurance can help parents cover essential needs in the short-term, so they can stay on track with their financial goals in the long-term. This means that parents may be able to provide for themselves and their families, even if/when they are unable to work due to a qualifying physical or mental health condition, without having to dip into their savings or compromise their financial futures.
3. Support holistic well-being
The financial security that may come with disability insurance can help parents feel less stressed and more holistically well overall. According to MetLife’s study, parents who feel in control of their finances are 71% more likely to say they feel mentally healthy and 52% more likely to feel resilient than those who do not.
What’s more, when these employees feel less financially and mentally strained, they’re more able to focus on their careers — translating to a win-win for both employers and employees. In fact, MetLife’s study finds that parents who have a savings cushion of at least three months are 27% more likely to be productive.
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Ultimately, employers should remain cognizant of all employees’ unique needs during this time — including parents. With offerings like disability insurance, employers can help parents care for themselves and those they love — even if uncertainty comes their way. Doing so will not only help boost their financial health, but also their overall well-being and their performance at work, leading to long-term security and stability.
