WELLESLEY, Mass., May 6, 2019 /PRNewswire/ -- Sun Life
U.S. is helping clients automatically enroll employees in
disability coverage, increasing population coverage and income
protection for workers. Auto-enrollment increases the likelihood of
employees having disability coverage when they need it. According
to the Social Security Administration, more than one in four people
currently entering the workforce can expect a disabling condition
to put them out of work for at least 12 months before they reach
retirement age.
"Most people in America are underinsured. Disability coverage
provides an extra layer of income protection that helps people
maintain financial security when they have to go on leave from
work," said David Healy, senior vice
president of Group Benefits at Sun Life Financial U.S.
"Implementing an auto-enrollment option for disability insurance
will increase coverage among workforce populations and help
alleviate financial burdens for people dealing with a major health
event."
According to research from the Federal Reserve, about half of
Americans don't have enough savings to cover three months of
expenses in the event of income loss, and could not cover an
unexpected expense of just $400.
A recent survey by Sun Life showed that employers and employees
value the safety net that automatic enrollment provides, especially
since some employees may wish they had chosen it during enrollment
season when they had the opportunity. Of the 35 percent of employee
respondents who do not currently have disability coverage, 76
percent say they believe the benefit has value.
With Sun Life, employers can enroll their workers in short- or
long-term disability coverage, with the option for employees to buy
higher levels coverage if they choose. Sun Life's program
recommends a multi-touchpoint communication plan that educates
employees on the value of disability and auto-enrollment, and
outlines the process for opting out.
During a recent webinar on auto-enrollment, Sun Life and the
Disability Management Employers Coalition (DMEC) polled more than
400 employers on whether they currently auto-enroll employees in a
401k or other income savings plan.
About half of the employer respondents said no, indicating a
large opportunity to help cover more people and automate some HR
tasks.
While health insurance covers certain medical expenses, taking
leave from work may add a financial burden when a person is
recovering from illness or injury. Along with having income
replacement that helps close the insurance coverage gap, Sun Life
disability members receive support from case managers and
vocational rehabilitation counselors who can help with workplace
accommodations or job retraining, providing a path to return to
work.
For more information on Sun Life's auto-enroll capability visit
www.sunlife.com/us.
About Sun Life Financial
Sun Life Financial is a
leading international financial services organization providing a
diverse range of insurance, wealth and asset management solutions
to individuals and corporate Clients. Sun Life Financial has
operations in a number of markets worldwide, including Canada, the United
States, the United Kingdom,
Ireland, Hong Kong, the
Philippines, Japan,
Indonesia, India, China,
Australia, Singapore, Vietnam, Malaysia and Bermuda. As of December
31, 2018, Sun Life Financial had total assets under
management of C$951 billion. For more
information, please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New
York (NYSE) and Philippine (PSE) stock exchanges under the
ticker symbol SLF.
In the United States, Sun Life
Financial is one of the largest group benefits providers, serving
more than 60,000 employers in small, medium and large workplaces
across the country. Sun Life's broad portfolio of insurance
products and services in the U.S. includes disability, absence
management, life, dental, vision, voluntary and medical stop-loss.
Sun Life employs approximately 6,000 people in its U.S insurance
and asset management businesses. Group insurance policies are
issued by Sun Life Assurance Company of Canada (Wellesley
Hills, Mass.), except in New
York, where policies are issued by Sun Life and Health
Insurance Company (U.S.) (Lansing,
Mich.). For more information, please visit
www.sunlife.com/us.
Media contact:
Devon Fernald
Sun Life Financial
781-416-7151
Devon.portney.fernald@sunlife.com
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SOURCE Sun Life Financial