Most people understand the importance of life insurance and that, without its protection, a family or business can be left with devastating financial consequences. A disabling injury or illness however, can be a very real threat to both as well.
Take a look at these statistics:
Risk of becoming disabled
- A disabling injury occurs every 3 seconds in a public setting and every 4 seconds in the homeNational Safety Council, “Injury Facts,” 2007
- 3 in 10 workers entering the workforce will become disabled before retiring Social Security Administration Fact Sheet 2007
- Of the Over 6.8 million workers who are receiving Social Security Disability benefits, almost half are under age 50Social Security Administration Fact Sheet 2007
Disability can be devastating to businesses
- The total cost of disability including “indirect” costs such as pay for replacement workers and lower productivity eclipses medical insurance costs for a business
- The average disability absence results in payments of $3,800, while lost productivity costs average over $22,8001
Unknown costs of disability absence include:
–Replacement of employee
–Stress on co-workers
1Integrated Benefits Institute report on Benefits of Integrated Medical/Disability Database, 10/6/2006.
Thomas Watjen, the CEO of UNUM, a leading disability insurer in the U.S.., admits that his industry is an under-served market and that there is a desperate need for the coverage. See his interview on CNBC.
There are insurance options available to protect businesses from loss due to the disability of key employees and families from the loss of income from bread-winners.