Group benefits and financial planning

Nonmedical benefits offered by employers can assist with healthcare costs not covered by other insurance offerings.

Consider these four facts about healthcare costs for group protection benefits in your financial plan.

Fact 1: Disabilities are common

It’s a challenge to budget for the unexpected. But disability happens more often than many think.

  • One in four of today's 20-year-olds will become disabled before reaching age 67.1
  • Only one in five employees (19%) are very confident they would be able to cover their current expenses in the event of a serious illness or injury.2

ReplacE income

Benefits paid by disability insurance replace a portion of an individual’s income if they’re unable to work due to a covered injury, surgery, accident, illness or even childbirth.

Fact 2: Savings may not cover injury cost

Injuries can mean unexpected healthcare expenses that outpace savings:

  • Most covered workers have an aggregate, or family deductible, with average deductibles ranging from $1,931 for traditional, non-high-deductible plans to $4,104 for high-deductible health plans.3
  • Yet only 40% of Americans have enough savings to pay for a $1,000 emergency.4

Cover expenses

Unexpected injury-related expenses like emergency room visits, hospital admission, crutches and survey may partially covered by accident insurance.

Fact 3: Major illness can cause financial hardship

Even those with healthcare may have trouble paying medical bills. According to a Kaiser Family Foundation poll,5 more than one in three Americans say it is either “very difficult” or “somewhat difficult" for them to pay their deductible. And about one in six have to make financial and lifestyle sacrifices to handle the cost – including using up most or all of their savings, and spending less on food, clothing, and basic household items.

Pay out-of-pocket costs

Benefits from critical illness insurance may help offset out-of-pocket expenses for a broad range of illnesses and conditions. They can even pay for things that health insurance may not cover, like travel for specialized care or experimental treatment.

Fact 4: Everyone needs a plan for the future

Lincoln research shows there’s a lot of room for improvement when it comes to planning how to cover future healthcare expenses. In the event of a serious illness or injury, the top three methods6 individuals expect to use to cover out-of-pocket expenses are:

  • Savings/checking account withdrawal                 72%
  • ​Credit card                                                                 37%
  • 401(k) withdrawal                                                     26%

Plan ahead

Coverage from nonmedical group insurance options like disability, accident and critical illness insurance can help protect income and savings by offering:

  • Cash benefits to help manage the impact of unexpected illness or injury on personal finances
  • Group rates, which are often less expensive than individual policy rates


1Social Security Administration, “Disability and Death Probability Tables for Insured Workers Born in 1997,” Table A
2Lincoln Financial Group. “2017 Employee Benefits Study” 
3 International Foundation of Employee Benefit Plans, Employee Benefits Survey: 2018 Results, September 11, 2018$1,500-for-Individual-Coverage-Through-an-Employer-Plan.aspx
4 Bankrate, January Financial Security Index Survey, January 16, 2019
5 Kaiser Family Foundation, Data Note: American’s Challenges with Health Care Costs, June 11, 2019,
6See footnote 2.

Insurance products (policy series GL1101, GL3001, GL401, GL501) are issued by The Lincoln National Life Insurance Company (Fort Wayne, IN), which does not solicit business in New York, nor is it licensed to do so. In New York, insurance products (policy series GL111, GL3001, GL401, GL501) are issued by Lincoln Life & Annuity Company of New York (Syracuse, NY). Both are Lincoln Financial Group® companies. Product availability and/or features may vary by state. Limitations and exclusions apply.

Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Affiliates are separately responsible for their own financial and contractual obligations.