People rarely think about disability the same way they think about health care. But without coverage, both can have a similarly devastating impact on a person’s health, income or livelihood.
So with all the extra attention being paid to health care reform as the Patient Protection and Affordable Care Act (PPACA) goes into effect, it’s more important than ever for brokers to encourage their clients to take a closer look at all of their benefits — especially disability coverage.
According to the CDA’s 2013 Long-Term Disability Claim Review, the number of employees insured by group LTD plans increased just 1 percent in 2012. And that’s down about 6 percent since 2008. The number of employers offering group LTD plans was flat in 2012, following three consecutive years of decline.
Anecdotally, 2013 prospect activity and sales of new disability insurance benefit programs have fallen below expectations, as employer and distributor attention has been riveted on health plans and PPACA compliance.
An underestimated risk
The CDA’s Disability Divide Research, conducted with employees, financial advisors and HR professionals, reveals all three groups dramatically underestimate — typically by a tenfold or more factor — their odds of experiencing a disability that will prevent them from working for an extended period of time.