Union members enjoy a significant advantage when it comes to disability income insurance access. According to the Bureau of Labor Statistics, 73% of private industry union workers have access to short-term disability insurance (STDI) and 44% have access to long-term disability insurance (LTDI) coverage — compared to just 41% and 35% of nonunion workers, respectively.
Disability income insurance replaces a portion of a worker’s earnings if an illness, injury, or childbirth prevents them from working. That money can be used to help pay living expenses, medical bills, or even be put into savings. STDI plans are designed to replace income for shorter periods and typically cover a period of weeks to months while LTDI plans are for longer lasting, and even permanent disabilities and benefits can extend for years. Without these benefits, a single medical setback can become a financial crisis.
The need is real: one in four of today’s 20-year-olds will be out of work for at least a year due to a disabling condition before reaching retirement age. While unions help workers secure these benefits, life insurers help pay them out to workers in need. Life insurers paid out $20.8 billion in disability benefits in 2024, and 92% of claimants report satisfaction with their employer-provided STDI coverage.
Disability coverage can also function to provide workers with pay during an otherwise unpaid leave of absence — covering workers after the birth of a child or during recovery from serious illness. In 2020, insurers and employers paid approximately $11.3 billion in such benefits to American workers, supporting nearly 62 million people through employer-based plans.
To learn more about disability income insurance, visit acli.com.
