Disability Coverage Remains A Mystery To Many Employees

Advisors who sell group coverage can help employers evaluate the current level of knowledge their employees have, Morris says.

They can do this in part by using calculators that insurance providers offer on the Internet. An employees budget is entered into the calculator, which then determines whether the employee has a need for disability insurance and if so, how much coverage is needed for the employee to continue her current lifestyle.

Questions to ask when selling group coverage to an employer include whether the employer thinks the employee knows what the product is, whether the employee has a clear definition of disability, and whether the employee knows how the expense of a potential disability could affect their budget, Morris says.

"Many people couldnt figure out whether it was worth it," she says. "Do they consider that there are many life events that could take them out of work? Pregnancy and their complications are the main reasons women between 25 and 45 are out of work, and women are 50% more likely to have a disability claim than males in that same age group."

Other ailments that keep women on disability include gynecological problems besides pregnancy and its complications, gall bladder problems and breast cancer, Morris says.

"Only 11% of employees surveyed had formal discussions with their financial planner on disability," she says. "Its a real opportunity for financial planners."

"Because seven out of 10 people between the ages of 35 and 65 will find themselves disabled during some point in their careers for at least three months, it is important that employees have a greater awareness of the role disability insurance can play in their financial and protection planning."

Reproduced from National Underwriter Life & Health/Financial Services Edition, December 8, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.