Diverse Workers More Prepared for Workplace Benefits' New Reality
WELLESLEY, MA, May 16, 2012 / --Although medical problems contribute to roughly half of all personal bankruptcies and home foreclosures in the United States, many of the nation’s full-time workers have insufficiently planned for the risk of long-term disability, concludes a study released today by the U.S. business group of Sun Life Financial Inc. (NYSE:SLF, TSX:SLF).
The report (“Will workers in America hope to dodge the bullet, remain blind to the risks, or simply hide? Perceptions, misconceptions, and best practices about long-term disability”) stems from a survey of over 2,000 workers across the United States conducted for Sun Life Financial by Kelton Research. The survey results suggest that a significant proportion of the American workforce remains unprepared for the current shift in workplace benefits, as more employers give workers the responsibility to decide whether to purchase group benefits such as disability, life, vision, and dental insurance.
“We must educate the U.S. workforce to understand the financial risks of long-term disability and learn best practices to mitigate their risks,” said Robert E. Klein, Jr., Vice President of Voluntary Benefits. “If ten couples gather for a barbecue, we estimate that roughly three of them will have a partner who experiences a disability lasting one year or longer during their professional lifetimes.”
"Because employers are footing less and less of the overall group insurance bill, workers in our country must take proactive steps to mitigate the financial risk of long-term disability,” said Michael E. Shunney, Senior Vice President and General Manager for Sun Life Financial’s U.S. Employee Benefits Group Division. “As our survey shows, people don’t always think logically when they contemplate their risks. By encouraging workers to learn how to protect themselves and their families against income loss from long-term disability, we hope this survey helps the American workforce plan for more than a lifetime of financial security."
- At least one-third (33%) of surveyed full-time workers lack long-term disability insurance.
- Over one-third (38%) of workers whose employers offered them the option to pay for group long-term disability insurance declined to buy it, leaving most uninsured.
- Workers who don’t buy group voluntary long-term disability coverage fall into three categories: The Gambler doesn’t think the risk justifies the cost of premiums. The Mole hasn’t considered the issue and so remains blind to solutions. The Ostrich finds the thought of disability too unpleasant to face.
- Workers under age fifty, minorities, men, and tech workers are more likely to have purchased long-term disability insurance than other respondents.
- Many workers don’t understand key features of long term disability insurance, and fail to anticipate how a disability may raise monthly living expenses.
About Sun Life Financial
Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, and Bermuda. In the United States and elsewhere, insurance products are offered by members of the Sun Life Financial group that are insurance companies. Sun Life Financial Inc., the holding company for the Sun Life Financial group of companies, is a public company. It is not an insurance company and does not offer insurance products for sale in the United States or elsewhere, and does not guarantee the obligations of its insurance company subsidiaries. In the United States, Sun Life Financial provides a range of products and services to employers and their employees, including group and voluntary life, disability, dental and stop-loss insurance products. These products are issued by Sun Life Assurance Company of Canada in all states except New York. In New York, these products my re-sendare issued by Sun Life Insurance and Annuity Company of New York. Product offerings may not be available in all states and may vary depending on state laws and regulations. Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE), and Philippine (PSE) stock exchanges under the ticker symbol SLF. For more information, visit www.sunlife.com/us.
Press Contact: | Tim Stone | Sun Life Financial | 781-366-5376 | firstname.lastname@example.org |
Launched in 1999, DiversityBusiness is the largest association of privately
owned businesses throughout the United States that provide goods and
services to Fortune 1000 companies, government agencies, and colleges and
universities. DiversityBusiness provides research and data collection
services for diversity including the "Top 50 Organizations for Multicultural
Business Opportunities", "Top 500 Diversity Owned Companies in America", and
others. Its research has been recognized and published by Forbes Magazine,
Business Week and thousands of other print and internet publications. The
site has gained national recognition and has won numerous awards for its
content and design.