Many Americans are out of work — and not because of the coronavirus pandemic. Instead, tens of millions of people are sidelined every year by an accident, illness or injury that causes a disability.
It’s more common than you might think. More than 1 in 4 of today’s 20-year-olds will suffer a disability that keeps them out of work for at least a year before they retire, according to the Council for Disability Awareness.1
That’s a long time to go without a paycheck. In fact, research by Unum shows that nearly two-thirds of workers could cover their bills with existing savings for only three months or less if they lost their primary income.2 Once the savings account is empty, 37 percent of those surveyed say they’d turn to family or friends, 36 percent would dip into retirement savings and 35 percent would start charging on credit cards — all short-term solutions, at best, with potentially serious long-term implications. (The percentages add up to over 100 because some people chose more than one option.)
Disability insurance can help provide financial protection against this scenario by replacing a portion of your income if you’re sick or hurt and unable to work.
According to Unum’s survey, 85 percent of workers think employers should offer disability insurance. But only about half of employees say their company offers it, and just more than one-third are enrolled in coverage. Baby boomers are particularly unlikely to have disability insurance; 73 percent of workers born between 1946 and 1964 say they don’t or are unsure if they do.
One-third of employees stated that they don’t have coverage because they’re healthy and don’t need it, and the number is even higher for younger work generations. Forty-two percent of millennials and 52 percent of people who are part of Generation Z lack coverage. That’s despite statistics showing the frequency of disabling injuries and illnesses, even for workers 40 or under. Unum’s survey showed two-thirds of workers who filed a disability claim didn’t think they’d ever use their coverage.
The next-most-common reason for not having coverage is cost: 29 percent of all employees and 39 percent of baby boomers say they can’t afford it.
The most affordable way to get disability insurance is through work, and the competitively priced MTA Disability Plan — designed specifically for MTA members — can help educators get the coverage and peace of mind that they need.
During the MTA Disability Plan open-enrollment period, which runs from March 28 through May 13, members of local associations that offer this program can enroll or change their benefits. Members may choose a short-term disability plan with two elimination period options and/or a long-term disability plan with a benefit of 60 percent of the member’s covered weekly salary. Both accident and critical illness insurance are available during open enrollment as well.
Forty-five percent of employees surveyed by Unum who do have disability coverage say they value the financial protection for themselves and their families. If you’re concerned about how you’d take care of yourself or your family if you can no longer work, MTA Benefits’ disability insurance through Unum can help protect your income. To find out if your local participates, contact your local president. Local presidents who are interested in offering this program to their members can learn more at mtabenefits.com/disabilityinsurance.
1 https://disabilitycanhappen.org/disability-statistic/
2 Online survey of 1,000 employed consumers by DYNATA, conducted on behalf of Unum, April 1-6, 2020.
