There are plenty of financial well-being articles out there. They’re useful, but many offer similar advice to working adults about budgeting based on income, managing credit card debt, or how to focus more on savings. While those are certainly wise suggestions, there are lesser-known opportunities that can similarly impact your financial fitness.
By leaning into these considerations, you can better prepare and help strengthen your financial future without breaking a sweat.
#1 Prioritize mental health
Mental well-being has a strong connection to financial wellness. Whether it’s work burnout or other personal stressors, the number of mental health-related work absences is growing. These types of absences rose 22% in 2024, with one in 10 leaves of absence now due to mental health-related issues, according to mental health services provider ComPsych.
And that’s not all. The financial stress of missing work and income can also affect mental health. According to a 2024 survey by Lincoln Financial, 85% of respondents reported that finances were their top source of stress.
That’s why mental well-being needs to be a priority alongside physical and financial health. There are some great resources supporting mental well-being available through employer-sponsored programs or additional benefits included with certain insurance plans. You can further reduce future mental well-being stressors by planning for the unknown with retirement, life, and disability plans.
#2 Tap into the value of disability insurance
Working U.S. adults recognize the need for financial protection to replace lost income if a chronic illness or injury prevents them from working … yet only 18% say they have disability insurance, according to the 2024 Insurance Barometer Study. If almost half of U.S. adults recognize the need for disability insurance, why don’t more have it?
The answer might surprise you. In LIMRA’s 2024 BEAT Study, employees reported the top reasons for declining employer-sponsored disability plans as: they don’t believe they need the benefit, or they don’t think it’s worth the cost. To me, that means there’s a disconnect — and an opportunity for education.
Nobody wants to spend time thinking about the worst-case scenarios. I get it. But planning for the unexpected and having income protection if you can’t work is essential when considering the financial health of you and your family.
At the same time, benefits professionals and employers have an obligation to spend more time discussing disability benefits and educating employees. The reality is that one in four young working adults will need disability benefits before reaching the typical retirement age. A sports injury, a fall off a ladder, an unexpected health issue, or pregnancy may prevent you from working for weeks or months. Without disability benefits, workers may risk their savings and overall financial health if they are unable to earn an income while recovering.
And there’s more. Industry data shows that fewer employers offer long-term disability plans compared to short-term disability plans. Of those who were offered disability insurance, fewer workers elected long-term disability coverage compared to short-term disability. The reason is that they don’t have access to or understanding of the benefits. Carriers and benefits professionals have the opportunity to demonstrate how short-term and long-term disability plans work together to replace lost income for both employers and employees. This could help employees better understand how disability insurance can help protect their financial well-being and future.
#3 Understand the advantages of voluntary benefits
Two years ago, over half of private-sector employees (55%) were enrolled in high-deductible health plans (HDHPs). In 2023, the minimum annual deductible for an HDHP was $1,500 for individuals and $3,000 for families, an amount that must be paid out of pocket before receiving benefits.
That cost is not a small ask for many families struggling to make ends meet, and that’s where supplemental health benefits can help. Supplemental health insurance can be a cost-effective way to help cover some (or all) of those financial gaps, providing cash in the case of illness, accidents, or hospitalizations. The cash benefit provided by these products can be used for various expenses, including helping to pay for health-related out-of-pocket bills, such as co-pays or deductibles.
Whether buying individual plans or enrolling in workplace benefits, education is key. This means not only understanding the health plan’s coverage but also how supplemental insurance plans complement health care coverage to help protect an employee’s financial well-being.
Face the future with confidence
Financial well-being is a big part of overall employee health and wellness. That’s why so much effort goes into selecting a robust suite of offerings to create a competitive employee benefits package. Whether you’re an employer, an employee, or you’re shopping for individual coverage, don’t overlook the potential impact of these insurance plans and benefits on your future financial fitness.
