Protecting your ability to earn an income is one of the most important financial decisions you can make. It’s why disability income (DI) insurance is one of the most valuable benefits an
employer can offer their employees.
A new study, 2013 Employer Perspectives on Disability Benefits: Disability Benefits Survey, commissioned by MassMutual and is a collaboration between the Society for Human Resource Management (SHRM) and MassMutual. The findings suggest that while the majority of employers recognize that their group long-term disability plans are an important part of their employee benefit offerings, there are gaps in the coverage and only a few expressed concern that high earners could still find themselves under-insured even with buy-up coverage.
- A large majority reported that their group disability plans
cover just half to two-thirds of the base salary. However,
variable compensation is often not covered.
- Only a small percentage of companies expressed concern that high earners are at the greatest risk for being under-insured even with buy-up coverage. Of those companies that do offer buy-up coverage,
half of them haven’t spoken with their benefit providers about the limitations that still exist even with
the addition of buy-up coverage.
- Fewer than one in five of the organizations offer supplemental individual disability income
The study confirms that there are large gaps in coverage – particularly for high earning employees who often count variable compensation as a crucial part of their income. It also helps to set the stage to start a
conversation about supplemental individual disability income insurance coverage options.