News Details

CHATTANOOGA, Tenn.--(BUSINESS WIRE)-- Unum's sales of critical illness insurance are up nearly 20 percent through the first half of 2009, and its new group critical illness product - launched just nine months ago - is already responsible for more than 30 percent of sales.

"As economic realities force employers to adjust their health benefits, employees are exposed to additional financial pressures," says Scott Brown, director of critical illness products for Unum (NYSE: UNM). "Critical illness insurance can help fill gaps in medical coverage and help pay for expenses that fall outside the scope of health coverage. Our sales trends show that employers recognize the need to help their employees fill these gaps."

Brown points to a June 2009 survey by the Society for Human Resource Management that found 60% of organizations reported the benefits offerings at their organization have been affected by current financial challenges. And most employee benefits offerings have experienced a slight downward trend over the last year.

The challenges of this economy have served to reinforce the importance of benefits in strengthening the financial stability of the American workforce.

"Higher deductibles and co-pays, and increasing costs of treatment can drain a bank account or stress credit accounts that are already maxed out," Brown says. "Critical illness insurance offered through the workplace is a key component in ensuring employees who face a battle with cancer or critical illness can focus on recovery without the financial anxiety."

The industry leader in sales of critical illness coverage for the last four years, Unum has paid nearly $50 million in benefits since 2002 for individuals ranging in age from 1 to 70 years. Those payments - available in sums up to $50,000 - helped thousands of workers and their families cover the costs associated with serious illness, anything from the costs of treatment to the expenses of travel or household bills.

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 income protection insurance in the United States and the United Kingdom. Through its subsidiaries, Unum paid $6 billion in total benefits to customers in 2008.

    Source: Unum