Ninety-Three Percent of San Francisco Workers Aren't Financially Prepared for Medical Emergencies

Aflac study finds one-third of Bay Area workers have less than $1,000 in emergency savings

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Apr 04, 2012, 05:00 ET

SAN FRANCISCO, April 4, 2012 /PRNewswire/ -- Only seven percent of Bay Area (San Francisco, Oakland, San Jose) workers strongly agree that their families would be financially prepared if an unexpected emergency were to occur, and six out of ten (63 percent) don't have an emergency financial plan at all. These significant findings are from the 2012 Aflac WorkForces Report, a national online survey of nearly 1,900 benefits decision-makers and more than 6,100 U.S. workers, conducted in January and February 2012 by Research Now and released by Aflac, the No. 1 provider of supplemental and guaranteed-renewable insurance in the United States.

Bay Area workers' lack of financial preparation may be linked to their overly optimistic attitudes about the probability of being diagnosed with a costly illness or disease. The survey revealed that nearly seven out of 10 (69 percent) Bay Area workers think it's not very or not at all likely they or a family member will be diagnosed with a serious illness like cancer, and two-thirds (65 percent) said they were not very or not at all likely to be diagnosed with a chronic illness, such as heart disease or diabetes.

The 2012 Aflac WorkForces Report also found the following:

When asked how Bay Area workers would pay for out-of-pocket expenses due to an unexpected illness:
- More than two-thirds (71 percent) said they would have to tap into savings.
- 26 percent would use a credit card.
- 15 percent — more than one out of 10 people — would have to withdraw funds from their 401(k) plans to cover the costs.
36 percent have less than $1,000 in savings for emergency expenses.
One-third (36 percent) of Bay Area workers are trying to reduce debt.

"It's alarming to know how financially unprepared the Bay Area workforce is if faced with a costly medical crisis. When an emergency occurs, families need to have a financial plan in place or risk negative consequences," said Allison Wendelberger, Aflac state sales coordinator for the Bay Area. "Now more than ever, it's important for employers to provide employees with solutions such as voluntary insurance. Since voluntary insurance is employee-paid, it is a great way for employers to expand their benefits without coming out of pocket and for employees to select benefits that fit their specific needs."

The 2012 Aflac WorkForces Report also found that 54 percent of workers would be at least somewhat likely to purchase voluntary health insurance plans if offered by their employer. Voluntary insurance policies, such as critical illness, short-term disability, accident, and more, are among the benefits options that can help protect the well-being and financial security of individuals and their families.

To see the 2012 study results and learn more about how people can better protect themselves and their families against the unknown, visit AflacWorkForcesReport.com or send an e-mail at [email protected].

Study overview
The Aflac WorkForces Report is an annual employee benefits study examining the forces impacting the trends, attitudes, and use of employee benefits. Surveying both American workers and business decision-makers, the Aflac WorkForces Report reconciles the perceptions and realities of benefits in the workplace. The insights aim to help businesses make informed decisions about benefits to better protect their employees and their bottom line.

Research methodology
The 2012 Aflac WorkForces Report was conducted by Research Now on behalf of Aflac. The research contained two components of research among the U.S. workforce—employer research and employee research.

The Employer Survey was conducted online within the United States between January 24, 2012, and February 7, 2012, among 1,876 benefits decision-makers. Results were representative of U.S. companies with at least three employees, based on company size (number of employees) and industry. No estimates of theoretical sampling error can be calculated; a full methodology is available.

The Employee Survey was conducted online within the United States between February 7, 2012, and February 23, 2012, among 6,151 employed adults ages 18 and older who are employed full or part time at a company with three or more employees and not retired. The first 3,151 interviews were nationally representative while the remaining 3,000 interviews were conducted among the Top 30 designated market areas (DMAs) — 100 interviews per DMA. Results were weighted as needed for household income. No estimates of theoretical sampling error can be calculated; a full methodology is available.

About Research Now
Research Now is the leading global online sampling and online data collection company. With over six million panelists in 38 countries worldwide, Research Now enables companies to listen to and interact with real consumers and business decision-makers to help them make key business decisions. Research Now offers a full suite of data collection services, including social media sampling, and operates the Valued Opinions™ Panel and e-Rewards® Opinion Panels. The company has a multilingual staff located in 24 offices around the globe and has been recognized for four consecutive years as the industry leader in client satisfaction. For more information, please visit researchnow.com.

About Aflac
When a policyholder gets sick or hurt, Aflac pays cash benefits fast. For more than 55 years, Aflac insurance policies have helped provide a safety net and give policyholders the opportunity to focus on recovery, not financial stress. In the United States, Aflac is the number one provider of guaranteed-renewable insurance. In Japan, Aflac is the number one life insurance company in terms of individual policies in force. Aflac insurance products provide protection to more than 50 million people worldwide. For six consecutive years, Aflac has been recognized by Ethisphere magazine as one of the World's Most Ethical Companies and by Forbes magazine as one of America's Best-Managed Companies in the Insurance category. In 2012, Fortune magazine recognized Aflac as one of the 100 Best Companies to Work For in America for the 14th consecutive year. Also, Fortune magazine included Aflac on its list of Most Admired Companies for the 11th time in 2012. Aflac Incorporated is a Fortune 500 company listed on the New York Stock Exchange under the symbol AFL. To find out more about Aflac, visit aflac.com or aflacenespanol.com.

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