The Council For Disability Awareness (CDA) and Life Happensnominated May as Disability Insurance Awareness Month in order toraise awareness about the importance of income protection.Statistics reveal that one in four of today’s 20 year-olds willbecome disabled before reaching age 67.

In the face of such an ominous statistic, why aren’t moreAmericans covered under some type of disability insuranceprotection? While the majority of large employers do offer sometype of long-term care protection, why are employees not electingto protect one of their most valuable assets—the ability to workand earn an income?

The CDA’s 2014 Disability Awareness Study reports that themajority of working adults are aware of their disability risks, yet57 percent of Americans remain without disability insurance and arevulnerable to losing their income due to a disability.

Although employers are not completely responsible for the lowrates of U.S. consumers’ election in disability insurance,employers should be accountable for offering disabilityinsurance to their employees, communicating to them their planoptions, and one could argue, subsidizing the cost of a certainamount of coverage.

Employer’s responsibility

Offering disability insurance as a part of a comprehensiveemployee benefits package is a key method to attract and retain toptalent. Currently, over 80 percent of large employers (with 100 employees or more)offer disability insurance as a part of their employee benefitsofferings.

Not only is disability insurance almost expected to be a part ofa reputable employer’s benefit package, it is also afamily-friendly benefit, as short-term disability plans typicallycover up to six weeks for routine pregnancy. Furthermore, should apermanent, essential employee become disabled, having disabilityinsurance to support their medical care and finances during theirrecovery increases the likelihood that they will return to work.When dedicated employees work hard for their employers, it isalmost a duty for employers to contribute finances to assistemployees in their time of need. Offering employer sponsoreddisability insurance is an easy way for employers to achieve thisaim and to show employees they are valued. Plus, it is aninexpensive use of benefits dollars in comparison to other lines ofcoverage.

Uneducated leads to under-covered

Failure to truly understand the costs associated with disabilityinsurance, the different levels of coverage and plans, and thegeneral awareness of the implications of not protecting one’sincome with disability insurance are among the topcited reasons as to why Americans do not purchase disabilityinsurance.

Employers who do not offer disability insurance totheir employees, whether subsidized or not, should seriouslyconsider adding it to their comprehensive benefits package, as itcan boost employee retention, employee-loyalty, and help contributeto employees’ financial security—all investments in the humancapital of the company.

Employers who do offer disability insurance have aresponsibility to communicate to their employees their disabilityplan options, the short-term and long-term income replacementpercentages, and the factors used to assess premium amounts inorder for more employees to purchase coverage and makeknowledgeable decisions about how much they shouldpurchase.

While the 2014 Long Term Disability Claims Review reveals that moreemployers are including disability insurance plans in theirbenefits offerings, fewer employees are actually electing topurchase coverage.

Technology breaksbarriers

Even though disability insurance may be a part of an employer’sproduct offerings, with so many employee classifications, openenrollment and qualifying life event elections to manage, and, ofcourse, reporting, printing, and mailing of compliance andnotification documents, it becomes nearly impossible for HR staffto provide personalized, employee-specific information andcorrespondence.

Clearly, employees are simply not receiving the information orinstructions required to make the correct disability insuranceelections.

Brokers, agents, insurance providers, and employers should takeinto account which sources of information consumers trust. The CDAreports that 90 percent of wage earners trust their employer forfinancial and insurance information.

Understanding the critical nature of offering a comprehensivebenefits package and delivering necessary employee communications,and given the ever-changing government regulations (think ACA),employers are quickly implementing robust technology solutions thatautomate multiple HR benefits transactions, as well as enable themto provide a unique employee enrollment experience wherecommunication and education are top initiatives.

Benefits administration technologies not only provide chiefadvantages to employers, but simultaneously resolve numerous,complex human resources issues surrounding employee benefitspackages and administration.

Employers are able to customize their product offerings, selecttheir carriers, and even differentiate an unlimited number ofemployee classifications that allow employees to select from an ala carte benefits plan. Employees make their elections onlinethrough a corporate-branded website and can even print out theirbenefits confirmation statement (BCS) immediately upon completingthe enrollment process.

The true power of benefits administration technology is in theadministrative features. HR departments are able to customize andsend both employee-specific emails and bulk emails regardingenrollment instructions, plan types, coverage amounts, or anythingthey feel will help an employee to make knowledgeable benefitselections that are right for them.

Some vendors are going a bit further to offer a full-servicebenefits administration technology outsourcing solution. Forexample, some offer COBRA Administration and ACA reportingintegration, along with a full contact centers and telephonicenrollment so clients’ employees can call with questions, make orchange benefits elections, and receive expert advice on theirbenefits options.

When the onus is on employers to not only offer competitivebenefits packages, but provide employees with rich benefitscommunication and manage numerous benefits administrativetransactions, the only solution is technology that integratesmultiple benefits administration services.

As employers lead employees to purchasing income protection,like disability insurance, through robust, innovative employeebenefits administration technology, more Americans will be betterprotected with supplemental income and more prepared forsustainable independent living should they need it.