Dive Brief:
- Forty percent of respondents in a recent Unum study of 1,000 U.S. adults report that they don't have or don't know if they have life insurance.
- The study revealed a great deal of uncertainty and anxiety in this area: 35% of respondents said that thinking about what would happen to their family in the event of their unexpected death was a top cause of anxiety, right behind going to the dentist (40%). Additionally, if the primary wage-earner were to die unexpectedly, 32% of respondents between the ages 25 and 64 said their family would experience a financial impact within a month.
- Unum, citing the life insurance industry group LIMRA, said nearly half of U.S. households are underinsured, with an average coverage gap of $200,000. While LIMRA recommends that individuals have seven to 10 times their salary in life insurance, 34% of respondents in the Unum study felt that one to two times their annual salary would be sufficient to protect their families.
Dive Insight:
Younger workers tend to be more likely to pass on voluntary benefits like life insurance and disability insurance, OneDigital Managing Principal Emily Bailey previously told HR Dive; they favor options that deal with more immediate concerns, such as commuter benefits and tuition reimbursement. But workers of all ages can benefit from education on financial wellness and planning.
Money is a major stressor for 80% of workers, according to research from Ceridian. Many employees would welcome more assistance from their employers with financial well-being and planning — about a third of respondents in a recent National Business Group on Health survey agreed. This could benefit employers as well. Last year, a report from Fidelity Investments revealed that employees with the highest amount of debt reported twice the absenteeism of those with the lowest amount of debt.
Companies providing savings options see a reduction in financial stress and a boost in productivity among lower-wage workers, according to research from Commonwealth.
