worry about the financial effects of job loss: Thirty-five percent of
unmarried respondents said they were extremely or very concerned about
losing their income due to disability over the next 12 months, versus
23% of married employees. As for economy-related job loss, 32% of
singles expressed similarly high levels of concern, versus 20% of
"Regardless of their marital status or ethnicity, employees are clearly
concerned about their income security," said Larry Hazzard, Berkshire's
Senior Vice President, Product & Marketing. "They understand that their
quality of life depends on it. And, while most employees have access to
unemployment insurance if their job is downsized, are they adequately
protected if they can't work because of a stroke, cancer, heart attack or
-- The study also revealed that 41% of employees with 401(k) or 403(b)
accounts said that they would be willing to borrow from their
retirement funds to cover lost income.
While this may seem like an easy solution, it comes with its own set of risks, Hazzard noted. "Taking money from your retirement accounts before you retire is like robbing yourself to pay yourself. It's generally not a good idea to stop contributions to your retirement accounts because you lose out on compound interest and your employer match too. If you have the right disability protection in place then you won't have to worry about liquidating or discontinuing your retirement savings because of a debilitating injury or illness."
Offered by a few insurers, including Berkshire
retirement income protection insurance enables employees and business
owners to continue making
|SOURCE The Guardian Life Insurance Company of America|
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