Ability insurance is an essential investment for any business seeking to protect its most valuable asset: its workforce. This insurance provides a financial safety net for employees who become unable to work due to an illness, injury, or disability. By safeguarding your employees' earning power, ability insurance ensures business continuity and employee well-being.
Benefit | Figure |
---|---|
Protects employees' income in case of illness, injury, or disability | 77% of disabled employees are out of work for at least a year, and 53% are out for at least five years. (National Council on Disability) |
Ensures financial stability for employees and their families | 54% of working-age Americans have less than $1,000 in savings to handle unexpected expenses. (Federal Reserve) |
Supports business productivity and reduces turnover | Presenteeism, or working while sick, costs the U.S. economy $162 billion annually. (CDC) |
Provides peace of mind for both employees and employers | 31% of employees are worried about losing their job if they become disabled. (MetLife) |
Ability insurance is a crucial component of a comprehensive employee benefits package for the following reasons:
Reason | Figure |
---|---|
Addresses the rising costs of healthcare and long-term care | Healthcare expenditures are projected to reach $20 trillion by 2025. (Centers for Medicare & Medicaid Services) |
Enhances employee retention and loyalty | 68% of employees say that having a good benefits package is important in their decision to stay with a company. (Society for Human Resource Management) |
Meets the needs of an aging workforce | By 2029, one-fifth of the U.S. workforce will be over 65. (Bureau of Labor Statistics) |
Fulfills corporate social responsibility | 85% of consumers expect businesses to take action on social and environmental issues. (Cone Communications) |
Company Name: XYZ Corp.
Challenge: High rate of employee absenteeism due to illness.
Solution: Implemented an ability insurance program.
Result: Reduced absenteeism by 15%, saving the company $500,000 annually.
Company Name: ABC Inc.
Challenge: Difficulty attracting and retaining qualified employees.
Solution: Offered ability insurance as part of its employee benefits package.
Result: Increased employee satisfaction and loyalty, leading to a 10% reduction in turnover rate.
Company Name: DEF Ltd.
Challenge: Financial burden on employees facing unexpected medical expenses.
Solution: Provided ability insurance coverage for all employees.
Result: Empowered employees to focus on their recovery without worrying about financial hardship, resulting in improved productivity and morale.
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