According to a company press release, the study by the
Guardian Life Insurance Company found that employees say
they consult a variety of sources before making any
decisions about their benefits each year.
The most common way that employees sought information about their benefits was through reading employer-provided benefits literature (50%), followed by discussing choices with family members (45%); talking to their human resources department (42%) and meeting with benefit advisers (36%).
The study also revealed some fallacies employees hold about their benefits packages:
- Almost half of the 70% of employees who say they understand the difference between group and individual coverage say they thought a physical examination was required to purchase group life insurance – which is typically not the case.
- More than 35% of those whose employers offer disability insurance did not know how much coverage they have
- 27% of respondents who have disability coverage didn’t know what percentage of their income is protected.
- 24% of respondents say they believe group disability insurance is more expensive than individual policies, but most group policies are less expensive.
- 48% of respondents don’t realize that employer-paid disability income benefits are taxable.