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Explore employee views on disability insurance benefits, costs, and coverage in a research study conducted by CIGNA. Discover insights on the importance and perception of disability insurance among employees. Learn about the value and cost-effectiveness of disability insurance offered by employers.
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Back to basics: Choosing and using disability insuranceUnderstanding views of disability insurance plansMay is Disability Insurance Awareness Month February 2009Prepared for: CIGNA
Employees say disability insurance is one of the most important benefits to have Of the following types of insurance benefits, which would you say is the most important to you? (Please choose the three most important benefits)* *Respondents selected from among these six types of insurance only. Other types of employee benefits were not considered.
When deciding how much insurance to have, half of employees say they buy as much as they can possibly afford • Fewer buy the minimum or don’t pay attention to it. • Less than one in ten say someone else makes their insurance decisions. When you decide about how much insurance to have, what is your approach?* *refielded (N=779)
However, many employees overestimate the cost of disability insurance • Three in ten answered correctly, while few (15%) underestimate the cost. And how much does disability insurance cost? For a basic long-term disability insurance policy a person might get at work, one that pays 50% of your paycheck if you cant work, which of the following would you say best reflects how much this kind of insurance would cost each month? 30% of employees are CORRECT; disability insurance costs $20-25 per month* 39% overestimate the cost of disability insurance *Typical monthly cost defined by CIGNA
Most employees say they buy health insurance for their family • Those with and without insurance are more likely to buy health insurance for their families, rather than just for themselves. Among all employees (insured and uninsured): Do you buy (or if you were to buy) health insurance, is it (or would it be) for just yourself or for you and your family?* Uninsured (N=40) combined with Insured due to the small base size *refielded
Most employees underestimate the typical monthly cost of health insurance • Most employees underestimate the typical monthly cost (that is, the combined cost for employees and employers) for singles as less than $300 and even more underestimate the typical cost of family insurance as less than $800. This suggests many employees are unaware how much their employer may contribute. Only one in four estimate the cost to be in a range that is correct for most people. What do you think is the typical monthly cost of health insurance that someone might get at work for a SINGLE PERSON, including what the employee pays and what the employer pays? Would it be…* What do you think is the typical monthly cost of health insurance that someone might get at work for a FAMILY, including what the employee pays and what the employer pays? Would it be…* 51% said less than $300 62% said less than $800 25% answered correctly** 25% answered correctly** Among those Insured and buy health insurance just for family or Uninsured and if were to buy health insurance, would be for family Among those Insured and buy health insurance just for self or Uninsured and if were to buy health insurance, would be for self *Refielded **Typical monthly cost is derived from the 2008 Kaiser/HRET Employer Health Benefits Survey
Nearly all employees say having disability insurance (that pays you part of your paycheck if sick/injured) would be valuable How valuable would it be to have disability insurance that pays you part of your paycheck if you got sick or were injured and couldn’t work? Would that be… 94% of employees say it would be valuable
A large majority of employees believe disability insurance is available through their employer and two-thirds say they have it • Most who say they have disability insurance get it through their employer. Do you know if disability insurance coverage is something available to you through your employer? Do you currently have disability insurance coverage? Who provides it? 89% know it is offered though their employer 64% say they have it
Disability Insurance is viewed as valuable and cost effective when offered by employers • Enrolling in a disability insurance program is a considered decision--few say they don’t pay attention or allow someone else to make decisions regarding disability insurance coverage Do you currently have disability insurance coverage? Who provides it? Agree with the following statements: Among those who have disability insurance
Those without disability insurance say they would appreciate getting such benefits through their employer • Yet, compared to those with this insurance, these uninsured employees have less faith in their employers to research and provide employee options. Do you currently have disability insurance coverage? Who provides it? Agree with the following statements: Among those who do not/aren’t sure if they have disability insurance
Employees appreciate the convenience of getting benefits through their employer • Those who have disability insurance agree getting it through their employer is cost effective. Agree with the following statements:
Single employees are less likely to have disability insurance Do you currently have disability insurance coverage? Who provides it?
When employees are looking for advice on life or disability insurance benefits they will most likely turn to their employer • Financial professionals and spouses are also common sources for advice. Who do you turn to for advice on life or disability insurance benefits? 85% ask a person for advice
Those with lower incomes are less likely to ask someone for advice on disability or life insurance • Unless it’s their family. Who do you turn to for advice on life insurance or disability insurance benefits?
Study objectives and methodology • Yankelovich, a part of The Futures Company, conducted a survey among American employees on behalf of CIGNA, in order to: • Discover the meaning of work as it relates to well being (whether employees “live to work” or “work to live”) • Evaluate the importance of different types of insurance and the approach employees take in choosing insurance • Understand the attitudes towards and current knowledge of employees’ disability insurance plans • Survey results were obtained through phone interviews among a national sample of 742 full-time employed Americans, aged 18 and over. Interviews were conducted January 29th through February 2nd, 2009. • This random-digit-dial sample was fully replicated and stratified by region. Only one interview was conducted per household. All sample numbers selected were subject to up to four attempts to complete an interview. • The sampling error for this study is +/- 3.6%.
