The value of employer-sponsored benefits
Group disability coverage protects about 500,000 families from impoverishment each year, contributing to a savings to the government and taxpayers of up to $4.5 billion per year, according to research by Charles River Associates (CRA), a leading global economic consulting and research firm.
Commissioned by Unum, Economic Analysis of Insurance Products in Workplace Benefits Programs in the U.S. quantifies for the first time the value of financial protection benefits for working families. It also examines the savings to government and taxpayers as these benefits relieve the burden on public assistance programs.
The research comes at a time when many working Americans lack adequate savings to protect themselves financially should a wage earner die or become disabled. Additionally, the federal government is facing unprecedented budget challenges, limiting its ability to provide citizens with a financial safety net.
But there are ways individuals can take more control of their financial security. One is to make greater use of the financial protection benefits offered or provided at work. Employer-sponsored benefits, like group disability insurance, help ensure that those unable to work due to illness or injury have sufficient funds to pay their bills and maintain their lifestyles without relying on public resources.
It is our hope that this report contributes meaningfully to a robust dialogue among consumers, employers, insurers and policymakers, as we move forward together to provide important financial protection to working Americans.
The research by Charles River Associates was presented July 27, 2011, at the PROTECT 2011: Workplace Benefits and Financial Security Symposium in Washington, D.C. Click here to watch a video of speaker highlights from the symposium.