By John Feeney, vice president, group sales and market development for the Renaissance Life & Health Insurance Company of America.
Attention Gen Z and Millennials: disability insurance is an important coverage for you, too. Some view employer-sponsored group disability insurance as an ancillary benefit reserved for older individuals, when in fact, disability insurance should be considered by all, regardless of age. Here are things to consider about disability insurance no matter what your age.
Accidents and injuries don’t discriminate
You can be injured or in an accident at any age. In fact, there is a 25% probability of becoming disabled at any time between age 20 and the age of retirement. This statistic shows the value of protecting yourself and your income throughout your life, whether that’s through your company’s group disability insurance coverage or an individual plan. Disability insurance can help with certain expenses if you are unable to work because you have been injured or are suffering from an illness.
To be prepared financially for the worst
You have probably heard the adage, “life happens when you least expect it.” And it rings true for accidents and injuries. None of us expect to have to use disability insurance. We hope we won’t have to. Unfortunately, bad things still happen, and sometimes it’s unavoidable. If you’re unable to work because of an accident or illness, disability insurance helps cover essential expenses‒things like rent, your mortgage, tuition, food and utilities. Disability coverage can help with expenses while you recover from your injury.
Surprise: disability may cover things you aren’t expecting
When you think of disability insurance, you may think workplace injuries like slips and falls, or more long-term illnesses like heart disease or cancer. While these are all examples of accidents and injuries typically covered through disability insurance, there are a few unexpected benefits as well. Many employer-sponsored short-term disability policies offer pregnancy and maternal benefits, providing certain income protection to expectant mothers on work leave after the birth of their child. This coverage can help with expenses when women and families need it most.
Important, affordable and often offered by employers
Since many younger people have been in the workforce for a shorter time period, they may not have built up adequate savings to draw upon should they be unable to work. Also, keep in mind the possibility that the earlier you invest in disability insurance, the lower your rates may be. This is due to the fact that as we age, we become more likely to suffer a disability caused by an injury or long-term illness.
And there’s another way you may save money on ancillary benefits like short-and long-term disability insurance: such insurance can often be purchased through an employer. Policies offered by an employer are typically less expensive than the cost of similar coverage purchased on an individual basis and may be included as part of a uniquely-tailored ancillary benefits package. Employees can adjust their benefits as needed and as their lives change, giving workers power over their own health and financial decisions.
Disability insurance can help protect your paycheck and those who depend on you, in case the unexpected happens. That’s something we can all appreciate, regardless of age.
1. U.S. Social Security Administration fact sheet, https://blog.disabilitycanhappen.org/holistic-protection-includes-income-protection-at-every-stage/
2. Policygenius, “What to know about disability insurance and pregnancy,” https://www.policygenius.com/disability-insurance/what-to-know-about-disability-insurance-and-pregnancy/
3. United Nations, Ageing and disability overview, https://www.un.org/development/desa/disabilities/disability-and-ageing.html
4. SHRM, “HR Gets Strategic About Voluntary Benefits,” https://shrm.org/hr-today/news/hr-magazine/pages/0614-voluntary-benefits.aspx
Underwritten by Renaissance Life & Health Insurance Company ofAmerica, Indianapolis, IN, and in New York by Renaissance Life & Health Insurance Company of New York, Binghamton, NY. Both companies may be reached at PO Box 1596, Indianapolis, IN 46206. Products may not be available in all states.