While many workers say they’re confused by insurance benefits, a Hartford-based insurance company is taking steps toward providing more clarity by changing the name of one its most macabre-sounding types of coverage.
Property and casualty insurer The Hartford has renamed its accidental death and dismemberment insurance to be slightly milder and more encompassing: accidental loss of life and severe injury benefits.
The company announced the change Wednesday, saying it wants to simplify its product names and benefit descriptions to make them easier for consumers to understand.
“We must take the mystery out of benefits,” said Laura Marzi, benefits expert and head of marketing for Group Benefits at The Hartford. “The complex language used to describe employee benefits has been a barrier for far too long.”
Marzi said The Hartford’s “plain language initiative” can transform how U.S. workers think about their benefits.
The company said it is also modernizing other benefits, adding customizable options and simplifying its educational materials.
After conducting a study, The Hartford found a need for better benefits education and resources to support workers. Among the study’s findings:
- 38% of U.S. workers say the names and descriptions of their employee benefits are confusing and 61% of employers agree
- 35% of U.S. workers do not understand the supplemental benefits that are offered and what they cover and 49% of employers agree employees lack understanding about these benefits
- 42% of U.S. workers believe their company needs better resources to help them understand their benefits and 58% of employers agree
Enhanced accidental loss of life and severe injury benefits will take effect starting Jan. 1, 2024, the company said. The improvements include coverage to help pay for recovery in a medical facility; mortgage payments; modifying a home, car or worksite; therapy services and other benefits if the loss occurs during a natural disaster or in the workplace.
Also, customers of The Hartford will begin to see employee benefits described in more plain language. Products will be grouped into three categories – life and loss, income protection, and supplemental health benefits – which are meant to be more transparent and descriptive of what the insurance coverage provides, the company said.
