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May marks Disability Insurance Awareness Month, an opportunity to be reminded of the critical role Disability Insurance plays in helping protect one’s income when life takes an unexpected turn. Only 28% of people have at least six months of expenses saved, and research from LIMRA backs that up, revealing that 61% of consumers would feel financial hardship within a year if the primary wage earner became sick or injured.
The good news is that access to Disability Insurance to help safeguard one’s income in the event of a sickness or injury is arguably more accessible than it’s ever been. But Disability Insurance does more than help protect income when something unexpected happens. Here are three benefits of Disability Insurance that go well beyond income protection for the unexpected.
Benefit No. 1: Disability Insurance helps protect the ability to work
Disability Insurance is known for the financial protection it offers, and many refer to it as “paycheck protection.” While it can and does help protect income during a disability, Disability Insurance also offers fundamental benefits that help protect an individual’s ability to work. Through rehabilitation and worksite modification benefits, Disability Insurance can help ease the transition back to work after a disability.
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Financial incentives and expert consultations on worksite modifications can lead to direct changes to the individual’s workplace environment to support returning to and staying at work. When the disabling condition means an individual can no longer work at their prior occupation, Disability Insurance provides access to vocational experts who can identify other occupations that an individual’s skills are a fit for, taking their limitations into consideration. Many Disability Insurance providers also offer support with job searches, job training, and resume writing, among other support tools.
Finally, many top-tier Disability Insurance providers also support employers with expert consultation from health and productivity professionals. These experts work directly with employers to identify claims trends and develop proactive approaches to reduce risk and improve pathways to return to work. This proactive approach creates opportunities for individuals to transition from disability to work that might otherwise be unavailable to them.
With all this added support, individuals are not just covered from the loss of income but the loss of their ability to work.
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Benefit No. 2: Disability Insurance can help protect for the EXPECTED
Anyone can experience a disability that takes them away from work. A disabling event can occur unexpectedly due to accidents or sudden illnesses, for example. But disabling events are also commonly a result of something that is planned for, and Disability Insurance can offer critical protection for these events as well.
The expected birth of a child, planned treatment for a degenerative condition, such as a back disorder, and scheduled treatment or recovery for a chronic health condition are examples of events and conditions that could be covered by Disability Insurance while also being planned. In fact, Prudential’s own data indicates that at least 41% of short-term disability claims received are likely a result of a planned event or treatment.
As we consider the value of Disability Insurance in helping to protect during life’s unexpected moments, it is important to remember the significant benefits the coverage can provide for the expected moments as well.
Benefit No. 3: Disability Insurance can help improve recovery
Having to leave work due to a disability is a significant and impactful experience for anyone in that situation. In addition to the financial impact, an individual out of work is dealing with the physical impact of the disability, the emotional impact of the change, and the social impact to connections with friends, coworkers, and other support systems they may have at work.
While Disability Insurance can’t address all components of recovery, Disability Insurance providers have worked hard over time to improve the experience for disability claimants and increase access to resources that can address factors that impact recovery.
For example, Prudential’s own research has shown clear connections between physical ailments that can cause disability and mental health. Many providers, including Prudential, now offer tools to support mental health during disability regardless of the cause of the disability. This is done as an added tool in claims management, because we know that mental health factors can impact an individual’s ability to complete their recovery and return to work.
The financial benefits of Disability Insurance also provide peace of mind to an individual while they are recovering by helping them meet their financial needs during recovery, which could include covering the costs of health insurance and out-of-pocket treatment. The financial benefits help remove a source of worry for an individual so they can focus on their recovery.
As we recognize Disability Insurance Awareness Month, it’s important to consider all the benefits of the coverage and raise awareness on how employees can better prepare for life’s unexpected AND expected moments. Disability Insurance is an important modern-day benefit that supports the health, financial stability, and resilience of today’s employees so they can work better and live longer, more productive lives.
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