Disability Insurance: The unsung hero of employee benefits
Help employees protect their income when it matters most
It’s a conversation we don’t have often enough. Disability insurance is one of the most critical financial safety nets for employees, yet it’s frequently overlooked or underappreciated. Why?
Many employees misjudge the likelihood of becoming disabled during their working years. Optimism bias leads us to think, "That won’t happen to me." But life is unpredictable, and injuries illnesses or mental health challenges can upend even the best-laid plans.
Here’s the truth employers can’t afford to ignore:
- Without disability insurance, employees risk a major gap in their financial stability if they’re unexpectedly not able to work.
- Common assumptions like “My savings will cover me” or “I have workers’ comp” often fall short. Social Security Disability Insurance (SSDI), while helpful, is limited and can be difficult to qualify for.
Still, people often prioritize health insurance or retirement savings, leaving disability coverage on the back burner. Some perceive it as a non-essential expense, while others might not fully understand the protection it offers.
This is where we, as leaders, HR professionals, and advocates, can step in. By championing this benefit and its awareness, we can help employees recognize the importance of disability insurance as income protection during life’s unexpected events—not just as a "nice-to-have" perk.
Three ways employers can build awareness and engagement:
1. Foster a culture of health and well-being
Go beyond compliance to create a workplace that reduces stigma, supports open communication, and encourages employees with disabilities to voice their needs and concerns. Ensure that people leaders are educated about disability accommodations, ADA requirements, and the importance of recognizing and supporting the needs of employees with disabilities. A culture that supports well-being makes the value of income protection more tangible.
2. Add educational resources to your communications strategy
Evaluate your benefits communication strategy and look for opportunities to educate employees about disability insurance year-round, not just during enrollment periods. By integrating disability insurance discussions into ongoing employee communications, workshops, and benefits check-ins, employers can ensure that their workforce understands the importance of this coverage in protecting their income and well-being. Regularly sharing information about benefit coverage and the claims process can help demystify disability insurance, making employees more informed and confident when they need it most.
3. Provide financial education content and tools
The best time to plan for disability income protection is before you actually need it. New York Life provides financial education content and tools, access to solutions, and guidance from financial professionals1 making it easier for employees to visualize how a disability would affect their household income and what role coverage plays in bridging that gap. Seeing the numbers and potential impact can spark interest and understanding.
The takeaway
Disability Insurance Awareness Month is the ideal time to shine a spotlight on this critical benefit. Let's ensure every employee understands not just what this benefit is but why it matters. For turnkey communication resources or to explore options for increasing employee engagement around disability coverage, reach out to your New York Life Group Benefit Solutions representative.
1Balance Wellbeing from New York Life is an optional offering that is available at no additional cost to New York Life Group Benefit Solutions clients with life and insured disability products. It is not available to clients with disability only who are sitused in WA and NY. Individuals have a choice to engage with New York Life Insurance Company agents for financial guidance and to purchase insurance and other products and services. If they choose to do so, those engagements will be governed by the particular applicable terms and conditions. Balance Wellbeing is brought to you by New York Life Insurance Company.
SMRU 7841262 Exp. 06.01.2025