Benefits April 24, 2001

Disability Coverage Inadequate for Many

April 24, 2001 (PLANSPONSOR.com) - A survey conducted by the Consumer Federation of America and the American Council of Life Insurers has found that 40% of workers have no long-term disability coverage.
Reported by

Worse, nearly half of those that do, don’t believe the coverage is adequate.

Of the 500 workers surveyed,

Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.

  • Two out of five had no long-term disability coverage
  • Almost three-quarters said that their finances would be adversely affected if they were unable to work for a year or longer.

“Under” Standing

Workers also have a poorer understanding of their disability benefits in comparison to their other benefits such as life insurance and retirement and pension benefits.

Of those covered by disability insurance,

  • some 43% said they did not know their basic long-term disability insurance benefit,
  • while 41% did not think their disability coverage adequate to protect their income.

«