A study by The Hartford has shown that single workers don’t have the protection they need in case of injury or illness.
Standard employer sponsored health coverage is leaving a widening gap in the protection it provides, making disability insurance and other additional support policies much more important to workers.
According to the results of new research performed by The Hartford, this is especially true among those who are employed and single. It is these individuals who are least likely to have a financial safety net in case they should be unable to work due to injury or illness, and who may be able to benefit greatly from supplemental health insurance.
The research said that American singles would be hardest hit and are least likely to have protection.
The name of the report on the research was the Hartford Benefits for Tomorrow Study. What it showed was that among single Americans, 87 percent would need to undergo significant changes to their lifestyles in order to be able to pay all of their bills if they should eve lose their incomes for three to six months. However, only 44 percent of single Americans are covered by disability insurance that would help to cover those costs should they ever be too sick or injured to work.
According to The Hartford vice president of voluntary benefits, Mike Fish, “When you consider that singles make up about half of the U.S. population, that means a significant number of Americans are risking financial hardship by going without paycheck protection.”
Fish went on to explain that a disability insurance policy that is provided through an employer costs approximately one dollar per day – about the same as a cup of coffee – and that it protects their independence and finances in the case that a health issue should make them unable to work for an income.
Single people across the country without additional coverage were asked what they would do if a an injury or illness stopped them from working for six weeks. Their responses were:
• 36 percent – use the money they had in savings
• 8 percent – make a 401(k) withdrawal
• 5 percent – ask a friend or family member for a loan
• 4 percent – move in with a family member
With disability insurance coverage, these financial hardships and lifestyle changes can often be entirely avoided.