Whether consciously cutting back on hours to achieve a better work/life balance, or involuntarily cut to part-time by employers seeking to cut back on mandatory benefit requirements, many people have gone from full-time to part-time employment status in recent years.
This has presented challenges to employees and employers alike in terms of having and providing access to meaningful benefit programs as flexible arrangements with fewer hours worked can limit the types of benefits for which employees can qualify.
A new product from Principal Financial Group is trying to bridge this gap by making individual disability income insurance available for part-time employees to purchase — a change from historic industry standards requiring full-time employment. Coverage is available for employees working 20 to 29 hours per week and earning over $40,000 annually.
“For years, advisors have been frustrated with the lack of quality benefit options available to offer part-time employees,” said Paul Fromm, vice president of individual disability insurance for The Principal. “We wanted to close that gap for income protection and provide a solution to help advisors meet the needs of this growing market. Offering quality income protection coverage for part-time employees does just that.”
Not only can part-time employees protect their income, they can also protect their ability to continue saving for retirement through Principal Life’s DI Retirement Security program.
“Life happens no matter how many hours you clock on your timecard,” adds Fromm. “Employees must be financially prepared to replace their paycheck when the unexpected happens.”
For more research, analysis and insight, visit The Principal Knowledge Center.
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