Financial security of working Americans is important priority, Unum
says
WASHINGTON--(BUSINESS WIRE)--
The creation of a bipartisan Income Protection Caucus in Congress will
help focus attention on the financial vulnerability of working Americans
and increase awareness of the value of income protection benefits
available at the workplace.
“The Income Protection Caucus will highlight issues that affect the
financial security of millions of people and their families,” said Unum
President and CEO Tom Watjen. “There is a tremendous need and
opportunity for the private, non-profit and public sectors to work more
closely together to raise the awareness of the importance of disability
income protection.”
The caucus, formed by Sens. Kay Hagan (D-NC) and Mark Kirk (R-IL),
alongside Reps. Carolyn McCarthy (D-NY) and Stephen Fincher (R-TN), will
serve as a clearinghouse for information on the risks of becoming
disabled from illness or injury during a working career and the
significant financial impact this can have.
“A disabling illness or injury can cause real financial hardship for
many individuals and their families, and too few Americans have access
to adequate financial protection,” Watjen said. “Disability insurance
creates a backstop against significant income loss, and enables ill or
injured workers to focus on recovery and a return to a productive
lifestyle.”
According to the Social Security Administration, one in four 20-year
olds will become disabled and unable to work before they reach the age
of 67. While the Bureau of Labor Statistics reports that one-third of
workers have access to disability income protection benefits at work,
more than 75 million workers do not have access to this coverage.
Research from the Consumer Federation of America and Unum* shows that
workers want greater access to these benefits and for policymakers to
take a more active role:
-
95 percent of long term disability beneficiaries agreed that they
would encourage other people to get disability insurance through their
employers
-
88 percent said that employers should do a better job of explaining
disability insurance
-
85 percent agreed that government should inform the public about the
risk of becoming disabled and its financial impact.
The government has a significant financial interest in the availability
of income protection benefits. A 2011 study by Charles River Associates,
commissioned by Unum, found that private, employer-sponsored disability
insurance saves taxpayers up to $4.5 billion dollars per year and helps
as many as 575,000 families avoid impoverishment and the need to rely on
public assistance programs.
“The Income Protection Caucus is an important step towards ensuring that
employer-sponsored benefits remain viable, affordable and available to
more American workers,” Watjen said.
* The CFA-Unum
survey of benefits recipients was conducted by Mathew Greenwald &
Associates in May 2013. The completed sample of 407 benefits recipients
was drawn from Unum’s customer base of long term disability
beneficiaries. The customer groups Unum covers are largely
representative of U.S. employers with regard to industry and number of
employees. Additional information about the survey methodology is
available in the full
report.
ABOUT UNUM
Unum (www.unum.com)
is a leading provider of financial protection benefits in the United
States and the United Kingdom. Unum’s portfolio includes disability,
life, accident and critical illness coverage, which help protect
millions of working people and their families in the event of an illness
or injury. The company reported revenues of $10.5 billion in 2012, and
its subsidiaries – Unum US, Colonial Life and Unum UK – provided $6.3
billion in benefits last year.
For more information, visit us at www.unum.com
or connect with us at www.facebook.com/unumbenefits,
www.twitter.com/unumnews
and www.linkedin.com/company/unum.
Unum
Dawn McAbee, 423-294-1892
Toll free: 866-750-8686
dmcabee@unum.com
Source: Unum