Skip to main content
Menu File a Claim Login
American-Fidelity-logo
Menu
Menu File a Claim Login
American-Fidelity-logo
American Fidelity Logo American Fidelity Logo
  1. Strategy
      •  
      • Employee Benefits
      • Communication and Education
      • Enrollment and Admin
      • HR Assistance
      • Tax Savings
      • Compliance Updates
      •  
  2. Products
      •  
      • Benefits
      • Dependent Verification
      • HR Technology
      • Reimbursement Accounts
      • Retirement Savings
      • Section 125
      •  
  3. Why Us
      •  
      • For Education
      • For the Public Sector
      • For Automotive
      • Account Managers
      • Customer Testimonials
      •  
  4. Blog
      •  
      • Benefits Strategy
      • Reimbursement Accounts
      • Supplemental Benefits
      • Customer Stories
      • Compliance Updates
      •  
  5. Support
      •  
      • COVID-19
      • Employer Assistance
      • Videos
      • Contact Us
      •  
  6. Claims
      •  
      •  
Login
 
 
American Fidelity Logo

Understanding the Importance of Disability Insurance

 

May 05, 2017

4 minute read

Category: Supplemental Benefits

Understanding the Importance of Disability Insurance

While disability insurance is often considered a staple of a comprehensive benefits program, one in three working Americans do not have adequate disability coverage.1

If you don’t offer disability insurance, how will you help your employees and their families in the event of a disabling illness or injury?

How can a disability impact employers?

When one of your employees is injured, your human resources representative is likely the first person to hear about it. The employee will ask, “I have to be out of work—now what?” And, you’ll want to offer a solution. That’s where disability insurance can help.

First, it’s extremely important to ensure your employees are educated on what disability insurance is, as well as its importance. American Fidelity Account Executive, Julie Anderson, notes:

“When a disability occurs and an employee didn’t apply for a disability policy, unfortunately, the employer is who the employee first turns to for assistance. There, they learn that they don’t have the coverage. Sometimes, employees don’t take accountability for not opting in or not participating in learning during the annual open enrollment, and that can be a tough conversation to have.”

Offering disability insurance also provides a way to formalize your support process for employees in need. Jared Levy, Regional Manager, says:

“In some situations where a disability insurance benefit is not offered, the employer will provide extended leave or pay in an effort to help. However, there can be a lot of issues with this if there is not a formalized program in place. If employers help one employee and not another, they could be at risk. Having a formalized policy in place with disability insurance can help cover these situations and alleviate the employer’s responsibility should something occur.”

How can a disability impact employees?

Disability insurance can help protect employees’ finances. If employees must miss work due to a qualifying injury or illness, they will still have bills to pay—like mortgages, utilities, medical insurance premiums, groceries, and car payments.

Without a paycheck to help pay these bills, employees can be at a huge financial risk. In fact, 66.5% of bankruptcies were brought about by medical bills families were unable to afford, or income loss due to illnesses.2

Executive Account Manager Carrie Burns, notes:

“Your employees are dependent upon their paychecks – not many can go more than a couple of weeks. If your employees were injured or ill, how would they handle that in today’s environment?”

Offering Disability Insurance is Important

Disability Insurance can help your employees continue to financially support their families, and help sustain what they have worked for most of their lives. Offering this benefit to your employees helps provide a way for you to support them in their time of need, which can positively affect employee retention and recruitment.

Sales Manager Scott Adkins explains:

“When an employer provides a benefit to help employees’ families, it shows their employees they care about them both at and away from work. This shows the employee they are more than just a number, and that you care about their well-being and their family. Disability insurance helps protect employees’ way of life. It can help them put groceries on the table, or help their kids still participate in sports and piano lessons. As an employer, offering this benefit says, ‘I care about your way of life.’”

Learn More About Disability Insurance 

  • Tags:
  • Disability

Share:

 

Related Disability Articles

 

Short- vs. long-term disability insurance: How it works

October 28, 2022

4 minute read

Both plans are designed to help protect you financially, however, depending on your situation, one may be more beneficial than the other. Learn more.

  • Tags:
  • Disability

Disability insurance vs. critical illness insurance: Which is better for you?

May 10, 2022

2 minute read

Are you trying to decide between disability insurance and critical illness insurance? Learn why it may be important to have both.

  • Tags:
  • Critical Illness
  • Disability

Heart-healthy tips for American Heart Month

February 15, 2022

3 minute read

With heart diseases being one of the leading causes of death in the U.S., it’s important to learn what steps you can take to help prevent them.

  • Tags:
  • General
  • Wellness
  • Critical Illness
  • Disability
  • Gap
  • Education

 

1Council for Disability Awareness: How Many Working Americans Have Adequate Disability Coverage?; April 26, 2018 2Truthout.org: Environment & Health; February 8, 2019 These products may contain limitations, exclusions, or waiting periods.

ESB-5805-0819

American Fidelity Assurance Company
americanfidelity.com

https://americanfidelity.com/blog/supplemental/importance-of-disability/

Site Map

About Us

News Center

Careers

Contact Us

© 2022 American Fidelity Assurance Company

  • Privacy Notices |
  • Report Fraud |
  • Terms of Service |
  • Licensing |
  • Special Notices |
  • Cameron Enterprises

1Council for Disability Awareness: How Many Working Americans Have Adequate Disability Coverage?; April 26, 2018 2Truthout.org: Environment & Health; February 8, 2019 These products may contain limitations, exclusions, or waiting periods.

ESB-5805-0819

  • File a Claim
    Login
  • Home
  • Benefits Strategy
    • Employee Benefits
    • Communication and Education
    • Enrollment and Admin
    • HR Assistance
    • Tax Savings
    • Compliance Updates
  • Products
    • Benefits
    • Dependent Verification
    • HR Technology
    • Reimbursement Accounts
    • Retirement Savings
    • Section 125
  • Why Us
    • For Education
    • For the Public Sector
    • For Automotive
    • Account Managers
    • Customer Testimonials
  • Blog
    • Benefits Strategy
    • Reimbursement Accounts
    • Supplemental Benefits
    • Customer Stories
    • Compliance Updates
  • Support
    • COVID-19
    • Employer Assistance
    • Videos
    • Contact Us
  • Claims
  • Careers
    • Corporate Careers
    • Sales Careers
  • About Us
  • Site Map

Popular Topics:
  • Register for an Account
  • Forms
  • Unused FSA Funds
  • HCFSA Eligible Expenses
  • Carryovers, grace periods and runoff periods
  • HSA Eligible Expenses
  • HSA Tax Forms
  • Disability Tax Forms