According to the Bureau of Labor Statistics, 39 percent of employees participate in short-term disability benefits and 28 percent participate in long-term benefits[1].

The short-term disability market includes more than 15 million employees who work at 212,357 companies in the United States. This coverage generates $2.8 billion in annual premium[2].

The long-term disability market includes nearly 36 million employees who work at 240,357 companies, and the coverage generates $7.8 billion in annual premium[3].

Unum is the No. 1 provider of group and individual disability income protection, with more than 11 million working Americans enrolled in our plans. The company works with more than 80,000 employers nationwide, including more than 40 percent of the Fortune 500[4].

According to a national survey[5], disability insurance is the most popular employer-offered voluntary benefit. The fact that it is in demand means that offering disability insurance can help employers recruit and retain top performers in a competitive market.

Disability insurance also dovetails naturally with employer-offered life and medical benefits. If an employee is seriously ill or injured, neither of those core benefits will help offset the loss of pay while the employee is out of work. A Harvard study shows that more than one quarter of those surveyed cited illness or injury as a specific reason for filing for bankruptcy[6]. Employers who offer disability insurance can help protect their employees from the financial impact of a debilitating illness or injury.

In addition, some disability plans offer employees valuable assistance during their time of disability, by looking at the whole-person, not simply the disability, when determining what services, such as counseling, that the employee may need to cope with the emotional effects of disability. Some plans also offer counselors who help the employee make the transition back to work as well.

In 2005, employers paid an average of $228 per employee for group long-term disability coverage, and $192 for group short-term disability[7].

For every dollar an employers spends on benefits and compensation, an average of 6.7 percent supports health insurance, 0.2 percent supports life insurance, 0.2 percent supports short-term disability and 0.1 percent supports long-term disability[1].