News Details

Most employees would consider buying more insurance at work

CHATTANOOGA, Tenn.--(BUSINESS WIRE)-- A recent study commissioned by employee benefits leader Unum (NYSE: UNM) shows that most employees do not feel their employer-provided benefits would provide sufficient financial protection if they missed work because of illness or injury. The survey also reveals that nearly 60 percent of workers would consider buying more coverage through work, if they were offered the chance.

"Employers invest a lot of time and money in building the right benefits package to help their workforce stay financially stable and help protect them from the financial fallout of illness and injury," said Neiciee Durrence, vice president, Voluntary Practice Leader for Unum. "As we head into the fall benefits enrollment season, this survey offers a strong message to employers about the need to offer ways to cover gaps in those benefits plans."

Only 32 percent of employees surveyed said the non-medical benefits they receive through work would provide adequate financial resources for them and their families should they become unable to work due to injury, illness or maternity.

Fifty-three percent say they would not have enough money to meet their basic needs if they were unable to work for an extended time, and another 15 percent were unsure if they could weather an extended period of missed work.

If their employer offered them the opportunity, 59 percent of employees indicate they would consider purchasing additional insurance to cover themselves financially.

The survey also found that:

    --  Even employees with higher annual incomes ($100,000 or more) felt unsure
        about their ability to withstand the loss of income, with 41 percent
        indicating that they would not be adequately protected by the benefits
        they received from their employer.
    --  Among younger employees (21-29), 63 percent say they would consider
        purchasing more coverage if it were offered through work. Among older
        employees, (45-64) 54 percent would consider purchasing more coverage.

As economic realities prompt businesses to trim budgets and benefits, voluntary coverages that employees can choose at work and fund themselves will play a growing role in filling the financial gaps, Durrence said.

During the Society for Human Resource Management conference in June, Unum asked human resources professionals whether they think employee interest in voluntary benefits will change in the next few years, Durrence said.

"About 63 percent surveyed said they expect employees to become more interested in voluntary coverages," she said.

About Unum

Unum (www.unum.com) is one of the leading providers of employee benefits products and services, and the largest provider of group and individual disability insurance, in the United States. Through its subsidiaries, Unum paid $6 billion in total benefits to customers in 2008.

About the survey

Unum participated in a multi-sponsor online survey conducted by Invoke Solutions between June 17-23, 2009. The results are based on a sample of 311 consumers between the ages of 21-64 who are employed full time.

    Source: Unum