EMPLOYEES PREFER 'TAILORED' DISABILITY BENEFITS
As businesses shift the cost of benefits programs to their workers, more and more employees wanting a larger say in how these dollars are spent are personalizing their Disability Income (DI) plans.
A recent nationwide survey of nearly 1,400 workers by TNS Omnibus found that:
- More than four in five respondents (86%) say that it's important to tailor individual DI benefits to their lifestyle.
- More than three in four (76%) believe they should have a say in designing their own programs, rather than having the employer choose one-size-fits-all coverage.
- More than four in five (82%) would like to sign up for a disability plan that lets them select the size of their payments.
The study found that women were especially likely to favor customizable benefits, Gen-Yers (Millennials) and 40-somethings valued personalization more highly than did older workers.
Variables in DI plans include the weekly benefit (from, $200 to $1,000.), the start date (how quickly payments begin - from eight to 30 days after an injury or illness covered by the plan), and the duration of payments (up to 104 weeks).
Benefits customization requires an informed workforce. Employers need to educate workers about every new DI program, allowing participants to customize their benefits, while helping them understand how their choices align with company goals. If a plan is meant to increase safety awareness or reduce absenteeism, it makes sense to tell workers this and let them change their coverage to what they think will help them meet this need.
On the other hand, offering employees too many choices under their DI plan can be counterproductive.
Our agency's Employee Benefits experts would be happy to offer your workers informed advice on tailoring a Disability Income plan to their needs - and those of your business. Feel free to get in touch with us at any time.