Six out of ten American workers do not have a financial plan in place to deal with an unexpected and costly life event such as a medical emergency, according to a new national study from Aflac.

The 2011 Aflac WorkForces Report, released June 8, found that 51 percent of workers said they are not very or not at all prepared to pay for out-of-pocket expenses not covered by major medical insurance. Additionally, 31 percent have less than $500 in savings for emergency expenses.

And for the most part, U.S. workers don't worry about additional expenses because they don’t believe an accident or illness could impact them or a family member. The report reveals just 19 percent of employees think it is likely they or a family member will be diagnosed with a chronic illness, such as heart disease or diabetes, and 13 percent said they think a serious illness like cancer will occur or that there will be a need for long-term care.

Only nine percent said they could foresee a long-term hospital stay, eight percent think they or a family member will become disabled, and six percent think they will be in a car accident.

“About half of the workers we surveyed said they’re already struggling with financial stress,” says Audrey Tillman, executive vice president of corporate services at Aflac. “It shows how close to the edge many people are and how an unexpected accident or illness could make things even more challenging, financially.”

But accidents occur much more often than people expect.

According to the National Safety Council, more than 25 million people in the United States suffered accident-related disabling injuries in 2008 with 13 million incidents happening at home and more than 5 million involving motor vehicles. The total cost of all unintentional disabling injuries, including items like medical expenses and lost wages/productivity, was more than $700 billion. And nearly one in three deaths in 2006 was caused by a form of cardiovascular disease, according to The American Heart Association.

When asked how they would pay for out-of-pocket expenses due to an unexpected illness, 44 percent of American workers said they would have to borrow money from family or friends, tap retirement savings, or use a credit card. And 19 percent admitted they have no idea how they would cover the costs.

“Businesses have a responsibility to educate employees about the risks of being unprepared for the unexpected and should offer workplace benefits which meet that need,” Tillman says. “And workers need to take better control of their futures by realizing financial well being is tied to their health.”

The 2011 Aflac WorkForces Report surveyed more than 4,000 U.S. workers and 2,000 benefits decision makers.

Instant Insights /

Study: Most Americans have no financial plan for the unexpected

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