Back to Basics Employee Benefit News (10/02) ; Blassingame, Kelley M.
According to ACLI, about five to seven times an annual salary represents adequate life insurance coverage, but experts note that employees are largely unaware of what constitutes appropriate life insurance coverage. Data shows that Sept. 11 provoked a boom in the sale of life insurance--life insurance applications in October 2001 rose by 8.6 percent over the same period a year before--and analysts agree that employers must return to educating workers about the importance of core coverages like life insurance and disability benefits. Figures show that the number of employers offering group life insurance has held at around 98 percent for the past four years, but fewer than half of employees at the same companies are enrolled in group long-term disability and individual disability insurance plans. Some experts argue that life and disability insurance should outrank other benefits in importance, but many employers continue to advertise popular benefits like long-term care insurance and critical illness coverage over these core benefits.