Unum Customer Stories Highlight Crucial Role of Income Protection Benefits

Chriseta Gaskin and David Conner don’t know one another, but they both know what it’s like to suddenly be unable to work and earn a living because of an injury. And thanks to disability insurance coverage, they both had the time and resources to focus on getting well rather than on worrying about paying the bills.

Gaskin and Conner have been featured in Unum’s WorkWell daily news site and in the company’s latest Corporate Responsibility Report, and their stories underscore the importance of long-term disability benefits in maintaining financial security. Gaskin and Conner represent the more than 424,500 new disability claims filed with the company in 2017 and are among the Unum customers who received $3.8 billion in disability benefits made available by their employer.

Unum has long worked to advance the importance of financial protection benefits like disability insurance. A lengthy and unexpected absence from work can have serious financial consequences. According to a 2017 GoBankingRates study, one in four United States workers has less than $1,000 in savings, and more than one half of households would struggle to recover from an unexpected $2,000 expense. These stories help raise awareness about this essential coverage.

Here’s a brief summary of their stories:

Chriseta Gaskin: Getting back to what matters most

Chriseta Gaskin, a 61-year-old personal banker, tried to ignore the pain in her knees for as long as she could, but it got to be too much. Chriseta decided to have knee replacement surgery and used her disability coverage to protect her from significant income loss during her recovery.

“I was aware of how much money I’d need to live while I wasn’t working,” Gaskin said. “My disability benefits check was direct deposited regularly, so I always had money to pay the bills. It was nice to not worry about expenses, because I did have anxiety about if I’d really even be able to work again.”

David Conner: Finding the courage to persevere

Department manager David Conner suffered a degloving injury when he was struck by a forklift. After nearly a dozen medical procedures left David bed-ridden, in chronic pain and depressed, he decided to amputate his left leg.

He had a lot to worry about, but his financial stability wasn’t one of them. “I owe everyone at Unum a lot of thanks,” Conner said. “There were so many things I didn’t know about my Unum coverage, and they took great care explaining everything to me. It was such a relief to know I’d have money coming in to pay my mortgage and take care of my family.”

For more information about how disability insurance benefits impact the lives of working Americans, visit the customer stories section of unum.com.

2018 Travelers Championship Generates $1.8 Million for Charity

The Travelers Companies, Inc., has announced that the 2018 Travelers Championship generated $1.8 million for charity. The tournament contributes 100% of its net proceeds to nonprofits throughout the region, and this year’s funding will support approximately 130 worthy organizations. The Travelers Championship has generated more than $16 million for more than 700 local charities since Travelers became title sponsor in 2007.

“We work hard to make the Travelers Championship a world-class event — attracting top players, thousands of dedicated fans and, ultimately, raising a significant amount of money for so many worthy causes,” said Alan Schnitzer, chairman and chief executive officer of Travelers. “Congratulations to our 2018 champion, Bubba Watson, for his impressive win against the world’s best golfers. We’re grateful for everyone’s support in helping to make this another unforgettable week.”

The tournament’s primary beneficiary, The Hole in the Wall Gang Camp, was founded in 1988 by Paul Newman and provides a camp experience for children facing serious illnesses. Three campers — Tyler Backus, Carly Demartino, and Jeremy Brown — served as the Honorary Co-Chairs this year, helping to raise awareness about the important role camp plays in the lives of more than 20,000 children and family members each year.

In addition to ticket sales, there were several events that contributed to the tournament’s charitable focus. The sold-out Women’s Day Breakfast was headlined by renowned journalist Norah O’Donnell along with Tony Award-nominated actor Christopher Jackson from the original Broadway cast of “Hamilton.” The Travelers Celebrity Pro-Am featured O’Donnell and Jackson, as well as actor/comedian George Lopez, actor Dane DeHaan, New York Jets wide receiver Jermaine Kearse, former NFL quarterback Boomer Esiason, broadcaster Chris Berman, and 10-time NBA All-Star Ray Allen, among others. The Liberty Bank Concert Series featured shows from rock band Survivor and country singer Tyler Farr.

Proceeds will also benefit the Jay S. Fishman Fund at the Bruce Edwards Foundation for ALS Research. The fund was established in memory of Jay Fishman, the former chairman and chief executive officer of Travelers.

The 2019 Travelers Championship will take place June 17–23 at TPC River Highlands in Cromwell, Connecticut.

Securian Financial Adds Open Multiple Employer Plan to Portfolio of Retirement Plan Solutions

Securian Financial is adding another fiduciary-friendly solution to its suite of products designed to expand access to employer-sponsored retirement plans in the small- to mid-sized business market.

MEPconnect™ is Securian Financial’s new open multiple employer plan (MEP). An MEP is a kind of retirement vehicle maintained as a single plan while enabling multiple, unrelated employers to participate, achieving economies of scale typically only attained by larger plans. MEPs operate similarly to traditional single employer retirement programs but with most of the administrative and fiduciary duties outsourced to retirement professionals—minimizing the adopting employer’s involvement while maximizing fiduciary protection.

“As much as they’d like to offer it as a benefit to their employees, many small business owners know that sponsoring a retirement plan can take specialized knowledge and add time-consuming administrative and fiduciary obligations to their already busy workload,” said Rick Ayers, Securian Financial’s vice president of retirement solutions. “MEPconnect incorporates the key features of an effective plan while transferring the bulk of the work and risk to third-party retirement professionals—making it easy for employers to stay focused on running their businesses.”

Securian Financial provides complete recordkeeping services and a robust investment platform for MEPconnect, along with easy access to account tools and resources through a secure website. Securian Financial teamed up with two other industry professionals to complete the streamlined retirement plan for employers:

• The Platinum 401(k) assumes the role of the ERISA 3(16) Plan Administrator and principal fiduciary for administrative functions of the plan.
• Fidelis Fiduciary Management serves as the ERISA 3(38) Investment Manager, taking full fiduciary responsibility and discretion regarding the selection and monitoring of investments offered under the plan.

Lincoln Financial Group Launches Indexed Variable Annuity with Income Option and Simple Investing Choices

Lincoln Financial Group announced the launch of Lincoln Level Advantage indexed variable annuity, a retirement planning solution offering savers options for protection and growth opportunities, with the ability to take income in retirement when ready. Designed for investors approaching their retirement years and for those already in retirement, Lincoln Level Advantage helps clients protect their assets from some of the toughest challenges in today’s market, while enabling them to continue to build their savings.

A study released this month by Lincoln Financial finds many savers are concerned about portfolio protection, especially as they approach retirement. Significantly, 40% of investors claim that any loss will require them to adjust their savings plan and retirement goals. Additionally, more than one half of pre-retirees are very concerned about the ability of their money to grow enough to provide a lasting income stream in retirement.

“Lincoln Level Advantage rounds out our broad portfolio of retirement and income planning solutions – all built to provide today’s savers with protection and income for the rest of their life,” said Will Fuller, president of Annuity Solutions, Lincoln Financial Distributors and Lincoln Financial Network. “We designed a solution for those seeking the growth potential of equity market participation with added levels of protection against market losses that could disrupt their saving and retirement goals.”

According to LIMRA Secure Retirement Institute (SRI), registered indexed-linked annuity sales increased 25% in 2017. Researchers surmise the product’s ability to provide protection with upside potential is very attractive to investors in a high-volatility/low-income environment. LIMRA SRI expects sales to continue to grow throughout 2018.

Lincoln Level Advantage provides investors with three choices to help meet their individual retirement planning goals and investing styles:

Step 1: Choose your investment. Four indexed account options are available, including the S&P 500®, Russell 2000®, MSCI EAFE Index, and Lincoln’s Capital Strength Index.

Step 2: Choose your term. Investors may choose from three term options, including one-year, six-year, and a six-year annual lock option, after which time they may reinvest into another term;

Step 3: Choose your level of protection. Investors may decide how much protection from market loss they would like, with options for 10%, 20%, 30%, or 100% protection.

In addition, Lincoln Level Advantage is among the industry’s first indexed variable annuity solution to offer investors an exit strategy through i4LIFE® Indexed Advantage – Lincoln’s patented optional lifetime income rider available for an additional charge. i4LIFE® Indexed Advantage enables clients to turn their account value into a lifetime income stream, with opportunities for rising income over time and additional tax efficiencies.

Lincoln Financial is committed to helping people reach their investment goals today, and throughout their changing financial life. Lincoln Level Advantage grows Lincoln’s broad portfolio of retirement and income planning solutions to meet the needs of more savers.

Lincoln Level Advantage is an indexed variable annuity. Annuities are long-term investment products that offer tax-deferred growth, access to a lifetime income stream, and death benefit protection. To decide if Lincoln Level Advantage is right for your clients, consider that its value will fluctuate, it is subject to investment risk and possible loss of principal, and there are costs associated with the variable investment options such as product charges. All guarantees, including those for optional features, and all amounts invested into the indexed accounts are subject to the claims-paying ability of the issuer. Limitations and conditions apply.

For more information about Lincoln Level Advantage, visit www.LFG.com/LevelAdvantage.

Colonial Life Launches Spanish-Language Consumer Website

Spanish-speaking consumers now can learn more about healthy living, employee benefits, and other workplace issues on a new website from Colonial Life.

As an enhancement to the company’s two-year-old WorkLife consumer website, the Spanish-language site will feature content on benefits and kinds of insurance, healthy living, finances, and common workplace issues.

“This website will be a valuable resource to Hispanic business owners and their employees,” said Dana Bagwell, director in growth markets at Colonial Life. “This is a strong step for Colonial Life in building credibility and a connection to the growing population of Spanish-speaking consumers.”

According to the United States Census Bureau, the number of Latino consumers will increase 163% to 133 million by 2050. Colonial Life is investing in this population by improving the overall consumer experience and by targeting high-growth areas for Spanish-speakers.

“When growing our business, engagement is a key factor,” Ms. Bagwell said. “To expand into this target market, we must communicate in the language and manner Latino consumers prefer.”

Survey Shows Most Who are Caring for Aging Family Member Struggle to Maintain Well-Being

With the elderly population in the United States expected to double in the coming decades, the demand for caregiving services will be higher than ever before. According to the National Association of Insurance Commissioners, 15 million people in the United States are expected to have a high long-term care need by 2050.

Do the loved ones of these millions of people—potential primary caregivers—understand what could be to come?

Securian Financial recently conducted a survey of more than 800 people currently providing, or who have provided, unpaid care to a parent, in-law, or spouse who is aging or has a disability or chronic disease.

The survey found that most caregivers (60%) spend more than 10 hours a week caring for a family member, and about one in four (29%) spend more than 20 hours a week. Women (32%) are more likely than men (26%) to spend more than 20 hours each week on caregiver duties.

More than one half (55%) of caregivers characterized their role as “supportive.” One-third, however, indicated they feel “concerned” (33%) or “overwhelmed” (32%) by their caregiving responsibilities.

The most difficult aspects of life for caregivers to maintain are emotional stability (60%) and a healthy balance between the time they spend care-giving and time spent with immediate family members (56%). Other areas with which caregivers struggle are keeping up with day-to-day tasks (54%) and maintaining their own financial well-being (52%), with one in six people (17%) finding it very difficult to sustain their financial well-being.

“As the primary caregiver for my mother who is battling Alzheimer’s disease, I know firsthand the emotional and financial burden of caring for an aging parent while raising two young children and having a full-time career,” says Kim Anderson, a product research manager for Securian Financial.

Families frequently shoulder the time and cost burdens associated with caregiving duties, and after the level of care required goes beyond the capabilities of immediate family members, the affordability of long-term care can be out of reach for many.

“In January, my mother’s health declined considerably and we made the difficult decision to move her into a skilled memory care facility,” says Ms. Anderson. “To help cover the steep costs of this high level of care, my father moved in with my family.”

Traditionally, many people have purchased stand-alone long-term care insurance. Unfortunately, the costs of long-term care are on the rise, and the standalone long-term care insurance market has undergone significant changes.

Many insurers have stopped offering stand-alone long-term care insurance entirely, and most of those that have stayed in the market have increased premiums substantially. In 2000, there were 125 insurers offering standalone long-term care insurance, according to the National Association of Insurance Commissioners. In 2014, there were less than 15.

Forty-eight percent of the caregivers participating in Securian’s survey say the person they are caring for does not have long-term care insurance. Those who care for a family member for more than 20 hours a week are the least likely (34%) to say their care recipient has long-term care insurance.

Cost is the primary reason why people do not purchase long-term care insurance. One half of caregivers (50%) whose care recipients do not have long-term care insurance believe it is too expensive for their recipient, while another 10% do not believe it is a worthwhile investment.

Securian’s survey also found that caregiving often impacts a person’s career and earning prospects.

One half (50%) of those who held jobs while they were a caregiver say it affected their job performance, with the most common impact being the need to take days off from work (41%).

In addition, more than one fifth of caregivers (22%) say their hours or responsibilities at work were reduced because of their care-giving commitment. Moreover, 15% of employed caregivers had to take a leave of absence from work, and 12% said they quit work altogether because of their care-giving responsibilities.

“The financial burden of missing extended periods of work to provide care for a loved one is a struggle for many,” says Ms. Anderson. “In our survey, 28% of the people providing care for a loved one who has long-term care insurance said the fact that the insurance doesn’t cover their own expenses as a non-compensated caregiver is challenging.”

In addition to stand-alone long-term care insurance, other insurance options designed to help pay for long-term care include life insurance and annuity policies with long-term care funding riders, and hybrid policies combining life insurance with long-term care benefits. Self-funding (i.e., paying out-of-pocket) is the most common way people in the United States pay for long-term care, and Medicaid is an option for care recipients with depleted assets.

Millennial Moms File Most Unum Short-Term Disability Maternity Claims

In 2017, Millennial moms accounted for 77% of short-term disability maternity claims for Unum, a leading provider of disability benefits in the United States.

“Millennials make up more than a third of the workforce and many of them have recently started or plan on starting a family soon,” said Greg Breter, senior vice president of benefits at Unum. “We anticipate seeing these numbers hold steady or even rise in the years to come, which can have important implications for employers.”

Short-term disability insurance replaces part of a working mother’s income for up to six to eight weeks, depending on the kind of delivery. In 2017, Unum paid nearly $100 million in short-term disability benefits to new mothers, helping them recover from delivery and bond with their newborns.

According to the U.S. Census Bureau, Millennials are the largest generation since Baby Boomers, with about 71 million people in the United States born between 1981 and 2000. By comparison, Generation X, born 1965 to 1980, has about 66 million people. Millennials are expected to overtake Boomers in population next year as their numbers swell (due to immigrant migration) to 73 million and Boomers decline to 72 million.

“Particularly among Millennial mothers who may be newer to the workforce, the financial assistance provided by short term disability insurance can make a huge difference,” Mr. Breter said. “But the reality is that most working women aren’t protected by short-term disability coverage, and this can leave them exposed to financial risk as they step away from work to bond with and care for their newborn.”

The United States Census Bureau estimates that around four million babies are born each year, with two-thirds born to mothers in the workforce. More than 40% of new working mothers, however, won’t receive paid leave.

According to a 2016 Pew Research Center study, 57% of parents with household incomes less than $30,000 who took parental leave say they took on debt to deal with the loss of income. About half (48%) say they went on public assistance or put off paying their bills (46%).

Millennial parents are also looking for more clarity and variety in the kinds of benefits their employers offer. A Unum micro-study in April, 2018, of 65 Millennials who delivered or adopted a child in the previous year indicated that 48% found the understanding of their parental leave benefits to be somewhat or very difficult. When asked what they most desired from their employers, 72% said flexible hours upon their return to work, while 62% desired paid parental leave.

Financial Wellness Program Popularity Rises Among Employers

Growing awareness of how financial wellness programs benefit employees has driven rapid growth in plan adoption among employers. Now, they say big data could help measure results, customize programs, and fill remaining gaps, according to a survey from Prudential’s Workplace Solutions Group, a business unit of Prudential Financial, Inc.

Prudential’s 10th survey of employee benefits, Benefits and Beyond: Employer Perspectives on Financial Wellness, finds the percentage of employers offering financial wellness programs rose to 83%, up from 20% in the survey two years earlier. An additional 14% of employers say they plan to offer these programs in the next one or two years. The survey includes responses from nearly 800 decision-makers for group insurance benefits at United States businesses with at least 100 full-time employees.

“Our survey reveals that employers and employees report higher satisfaction with their benefit plans when financial wellness programs are offered,” said Vishal Jain, financial wellness officer for Prudential’s Workplace Solutions Group. “Employees increasingly look to their employers to help them achieve financial security, and employers are seeking data and insights on how to respond and influence better outcomes.”

Prudential’s survey examines varying employer attitudes about financial wellness, as well as common kinds of financial wellness programs, top metrics of success, and potential barriers to implementation:

·       Employers who offer financial wellness are more satisfied with their total benefits program (61%), than those who do not (44%).

·       Larger employers were more satisfied with their financial wellness offerings (72%) than medium (54%) or small employers (50%).

·       Most large employers (61%) believe data sharing is employees’ biggest barrier to participation in financial wellness programs, citing “privacy concerns” and “putting together all the data and information.”

·       Overall, retirement plan and benefit providers are the preferred providers of financial wellness.

·       Criteria for selecting financial wellness providers are primarily driven by cost, ease of implementation, and expertise.

Despite recent shifts in employment toward gig and other alternative work arrangements that challenge the traditional employer-employee relationship, the survey finds that most employers are committed to offering employee benefits:

·       The three most critical outcomes employers want their benefits strategies to achieve are to attract and retain talent, improve employee productivity, and assure employees that they care about their financial well-being.

·       Sixty percent of employers believe they should provide benefits to employees and only 15% say employees should be responsible for their own financial well-being and future.

·       Almost two-thirds (64%) believe their employees are highly satisfied with their overall benefits package, up from 41% in the previous survey.

·       A third of employers say they should be responsible for paying for all the costs of the employee benefits they offer.

According to the survey, employers primarily rely on employees to tell them what kinds of financial wellness programs they need and how to measure the success of the programs. Methods used include surveys and informal feedback, analysis of internal data around Section 401(k) loans or withdrawals, as well as wage garnishments. More than two-thirds measure the impact of their financial wellness programs at least quarterly.

“Employers recognize the best way to support employees is to understand their needs,” Jain said. “As financial wellness becomes the rule rather than the exception, financial services providers that can use data to help employers develop better programs and communications for employees will be increasingly valued.”

Principal Financial Group Expands Financial Wellness Resources

Principal Financial Group® has teamed up with ARAG®, a leader in legal insurance, to roll out access to a legal document resource for retirement plan participants. This resource previously had only been available to group life insurance customers as part of the financial wellness resources Principal makes available to help people manage their financial future. With this new relationship, people now can take immediate action regarding their financial wellness and risk planning by preparing a will, healthcare power of attorney, and more.

Financial wellness continues to be an important topic for workers in the United States. Many people report struggling with risk and protection planning. Only 26% of Americans have a complete will that is up to date. Additionally, 71% don’t know where to turn or how to get started with legal matters.

“We’re constantly listening to our customer’s needs. And when 75% said they would find legal documentation helpful in supporting their financial wellness, it was a no-brainer to help fill this gap,” said Joleen Workman, vice president of retirement at Principal®. “People who know more are more confident, and confident people make good decisions. That’s why we work every day to help educate people and build their confidence around financial decision making.”

For persons looking for a place to get started with risk planning, Principal, along with ARAG, provides education and resources to help people take action. After the forms are filled out in the system, individuals can follow easy steps to formalize their plan, often by taking their documents to a notary.

Research shows that a lack of confidence is the primary reason people don’t make financial decisions, not the income or education concerns they often cite. In addition, people who spend time learning about financial planning are 75% more likely to be confident in their financial future. That’s why Principal provides access to holistic financial wellness resources with education to help people achieve both short-term and long-term goals.

“We’ve always focused on financial wellness, and we know its importance only continues to grow. Principal will take the best of what has helped our customers in the past, combined with new solutions to help round out their financial picture,” added Ms. Workman. “It’s important for people to feel confident and prepared for whatever the future may bring. The more we can lower barriers to financial education and resources, the better prepared people will be to have enough, save enough, and protect enough for their future.”

Lincoln Financial Group Offers Tips During National Retirement Planning Week

In conjunction with National Retirement Planning Week (April 9-13), Lincoln Financial Group shares three steps to help people in the United States plan for retirement and help meet their retirement income goals.

“Retirement is a milestone that provides Americans with great opportunities, but also significant challenges as today’s savers face living longer,” says Will Fuller, president of Annuity Solutions, Lincoln Financial Network and Lincoln Financial Distributors at Lincoln Financial Group. “Thousands of Americans are entering retirement each day, and having enough money to last their lifetime is one of their top retirement goals.”

Starting a conversation with a financial professional can be a simple first step in the planning process, and helps savers identify the benefits of the many solutions available in the market. Lincoln offers three tips to help people prepare for retirement throughout their lives and maintain the lifestyle they want in retirement:

1. Maximize workplace benefits:  Many employers offer benefits that can help employees prepare for tomorrow, whether it’s saving for retirement through an employer-sponsored plan like a Section 401(k) plan or protecting their income with disability, critical illness, and accident insurance.

An employee can start saving for retirement by contributing to their employer-sponsored retirement plan and increasing their contribution every year. A full two-thirds of retirement plan participants understand that they should be saving at least 10% of their salary to stay on track, and 45% believe they need to save 15% or more, which aligns with general industry recommendations. Only four in 10 savers, however, are saving as much as they think is necessary. If the employer offers a match, the employee should save up to that match, or else they’re leaving free money on the table.

It’s just as important to protect against unforeseen events that could force a person to tap into their retirement savings. Employees are concerned about protecting their income – 60% of employees are worried about the loss of household income because of an unexpected illness or injury, and 70% are worried about healthcare expenses. Workplace benefits like disability, critical illness, and accident insurance provide supplemental coverage that can help guard against these events.

2. Prepare for the unexpected:  A well-rounded retirement plan needs to include a strategy to address potential long-term care needs. The Department of Health and Human Services estimates that more than one in two people turning 65 years old will need some form of long-term care in their lifetime.

Long-term care planning should begin around age 50 and include meaningful discussions with both family members and a financial professional together to understand the realities and risks of long-term care, lay out care preferences, and assess care options – including family caregiving and professional services. In the case of professional caregiving services, which can potentially exceed $100,000 annually, it’s important to discuss how such services would be paid for if needed. Today, there are many different kinds of long-term care funding solutions available in the market that can help mitigate the costs of care events, enabling consumers to select a solution that fits their specific care and financial needs.

3. Ensure income is there when needed: An equally important part of building a successful plan is to include a strong income strategy that provides a dependable stream of income throughout retirement. This is about maintaining the lifestyle savers are used to after the paychecks have stopped. Research shows that seven in 10 Americans who don’t own a guaranteed lifetime income product, like an annuity, say it’s because they don’t know enough about it. And among today’s 65-year-old married couples, there is a 47% chance that one spouse will live to age 95 – making an income stream that lasts a lifetime all the more important.

“Knowing you have a plan that includes protection from market losses and opportunity for growth can help you feel more confident about facing some of the challenges that may come your way,” added Mr. Fuller. “There are many options that can help protect savings, provide growth, and give savers a steady check in retirement that can’t be outlived. Working with a financial professional to learn about the many solutions available is a good place to start.”

Another often-overlooked source of retirement income is cash-value life insurance. With these kinds of policies, consumers can potentially accumulate savings on a tax-deferred basis that can then be distributed tax-efficiently through policy loans and withdrawals as a source of supplemental retirement income.

Throughout the week, Lincoln will highlight various tips and resources to help engage savers on the topic of retirement planning. Individuals can also use the online calculators and planning tools offered on Lincoln’s website. In partnership with the Insured Retirement Institute (IRI), Lincoln will also host two webinars for advisors to attend for Continuing Education credits.

Each year, National Retirement Planning Week encourages and promotes positive savings behaviors among Americans, through tools and resources to help them plan for their financial needs in retirement. The National Retirement Planning Coalition – a group of education, consumer advocacy and financial service organizations – spearheads this effort to help Americans plan for retirement. Lincoln is a member company of the Insured Retirement Institute (IRI) – the organization that helps fuel the coalition and annual event.

For more information about National Retirement Planning Week, visit: https://www.retireonyourterms.org/.