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CHATTANOOGA, Tenn.--(BUSINESS WIRE)-- If they could not work because of injury or illness, most people who do not have disability coverage would tap savings, borrow from credit cards or ask friends, family or a partner to help support them, according to a study commissioned by Unum (NYSE: UNM) and conducted by Harris Interactive.

"Three in 10 workers entering the workforce today will be disabled before retirement, and one in seven will be disabled for five years or more," said Mike Simonds, senior vice president of Unum US, citing industry data from the Council for Disability Awareness. "Today's workers face a time of tremendous economic upheaval, and the benefits decisions they make now can help protect their financial futures."

Disability Insurance Awareness Month in May presents a good opportunity to highlight the increasingly important role employee benefits play in financial stability, Simonds said.

Unum's survey of the two largest generations in the workforce reveals that, among generation Y workers (ages 18-30) who do not have disability coverage:

    --  39 percent say relying on savings would be one of their two likeliest
        options if they could not work
    --  33 percent say borrowing from friends or family would be a likely source
        of income, and 16 percent would borrow from credit cards
    --  18 percent aren't sure how they would get by

Among employed baby boomers (ages 44-62) who do not have disability coverage:

    --  49 percent say relying on savings would be one of their two likeliest
        options if they could not work
    --  40 percent say a partner's earnings would be a likely source of income
    --  15 percent aren't sure how they would get by

"As financial safety nets fray and savings erode, these generations have a particular need to think about ways to protect their financial stability," Simonds said. "Boomers are facing the loss of savings and 401(k) values, while the newest generation of workers is trying to build a financial foundation in an unsteady time."

The survey also reveals neither group considers disability benefits a top financial priority. Among generation Y workers, only 1 percent rank disability coverage as one of their top four financial priorities. And the news isn't much better among boomers, only 5 percent of whom identified disability insurance as among their top four financial priorities.

For 63 percent of generation Y workers, paying down debt/student loans is a top financial priority, while putting money into savings or retirement accounts is a top priority for 66 percent of employed boomers. Dining out/entertainment is a high priority for 57 percent of generation Y workers, while paying for vacations is a high priority for 32 percent of boomers.

The survey also reveals that the workplace is a critical source of information about benefits protection. For 76 percent of employed baby boomers and 68 percent of generation Y workers, the workplace is among their most reliable sources of information about benefits.

"Effective education at work is the best way to help American workers understand the value of benefits," Simonds said. "Industry data shows more than 70 percent of Americans live paycheck-to-paycheck, and half of bankruptcies are caused by unexpected illnesses, injuries and medical bills. The right benefits coverage can make all the difference."

About Unum

Unum (www.unum.com) is one of the leading providers of employee benefits products and services in the United States and the United Kingdom. Through its subsidiaries, Unum Group provided nearly $6 billion in total benefits to customers in 2008.

About the Harris Interactive Survey

This study was conducted online within the United States by Harris Interactive on behalf of UNUM between August 12-14, 2008 among 1,353 adults age 18 years or older, 548 of whom are considered Generation Y (ages 18-30) and 805 of whom were Baby Boomers (ages 44-62). Of those, 363 Generation Y and 555 Baby Boomer respondents were either employed full-time, part-time, or self employed. Results were weighted as needed for age, sex, race/ethnicity, education, region and household income. Propensity score weighting was also used to adjust for respondents' propensity to be online. No estimates of theoretical sampling error can be calculated; a full methodology is available.

About Harris Interactive

Harris Interactive is a global leader in custom market research. With a long and rich history in multimodal research that is powered by our science and technology, we assist clients in achieving business results. Harris Interactive serves clients globally through our North American, European and Asian offices and a network of independent market research firms. For more information, please visit www.harrisinteractive.com.

    Source: Unum