More than half of workers ages 18-31 significantly overestimate the average cost of disability insurance purchased at work. And only one in three completely understand life insurance, according to new research.
The Hartford Financial Services Group Inc. Hartford, Conn. (NYSE: HIG), released this finding in a survey of 1,000 full-time U.S. workers, ages 18-64. Developed by The Hartford’s Group Benefits team and fielded via an online survey by BuzzBack, the Hartford Benefits for Tomorrow Study aims to better understand the benefits behaviors and attitudes of Millennials.
The Hartford Benefits for Tomorrow Study finds that less than half of Gen Y workers, also known as Millennials, have signed up for disability income insurance. Just one in four of the respondents say they “completely understand” the product.”
More than half of the Generation Y respondents surveyed say they overestimate the cost of disability income insurance by “hundreds of dollars,” the report adds. Fewer than one in ten (9%) of Millennials guessed the right answer: the average cost is $250 per year, or “less than a new cell phone or designer purse.”
If they couldn’t work for more than six weeks due to an accident or serious illness, many of the Millennials polled say they would dip into savings (33%), draw from their 401(k) account or charge expenses against a credit card (21%) or ask friends and family for a loan or move back in with their parents (22%).
Less than one-third of the Millennials polled (27%) say their parents help influence their benefits choices compared to 2% of older boomers.
Nearly 9 in 10 singles surveyed (87%) say they would need to make lifestyle changes to meet expenses if they lost income for three to six months. And fewer than 5 in 10 (44%) of single Americans have the life insurance coverage to help provide an income.