Benefits April 28, 2010

Insurer Study Finds Income Protection Important During Disability

April 27, 2010 (PLANSPONSOR.com) – Having disability income protection can help blunt the emotional and financial impacts of being laid up for an extended period, insurer MetLife said Wednesday.

Reported by

Fred Schneyer

A news release about The MetLife Study of the Emotional and Financial Impact of Disability said adequacy of that disability coverage can make a significant difference in how much people suffer during their recovery period.

Specifically, Metlife said the study found that:

90% of participants who said they had inadequate coverage felt that the disability had a major or devastating effect on their emotional lives, compared to 63% of those who felt their coverage was at least somewhat adequate.
54% of those with inadequate coverage felt that their disability had a major or devastating impact on their relationships, compared to 37% of those whose coverage was felt to be at least somewhat adequate.
77% of those with inadequate coverage experienced feelings of depression and anxiety during their disability, compared to 58% of those whose coverage was at least somewhat adequate.

In addition, 88% of those with inadequate coverage said the disability had a major or devastating impact on their feelings of financial security, compared to 61% of those who felt that their coverage was at least somewhat adequate.

Seventy-seven percent of those who felt that their coverage was inadequate reported withdrawing money from savings, investments or retirement accounts, compared to 51% of those who felt coverage were at least somewhat adequate. Fifty percent of those with inadequate coverage said they borrowed money from friends or family as a result of the disability, contrasted to 24% of those whose coverage was at least somewhat adequate.

Finally, 62% of those with inadequate coverage said they are currently living paycheck-to-paycheck, compared to 37% of those whose coverage was at least somewhat adequate.

The MetLife Study of the Emotional and Financial Impact of Disability was conducted in March 2010 by Zeldis Research Associates, and surveyed 300 people, ages 25 to 55, who had experienced a non-workers’ compensation/non-pregnancy disability that prevented them from working for six months or more but have since returned to work.