High Wire Act: New Research From The Hartford Finds Family Finances Often Hanging...

High Wire Act: New Research From The Hartford Finds Family Finances Often Hanging Without A Safety Net

Research discovers many Americans are barely making ends meet and
risk financial traps due to lack of life and disability insurance
coverage
HARTFORD, Conn.--(Business Wire)--
New research from The Hartford Financial Services Group, Inc.,
(NYSE: HIG), one of the nation's largest diversified financial
services companies, found that most Americans sometimes find
themselves in a precarious financial position, without a safety net if
they experience a disabling illness or injury.

A large majority of survey respondents (70 percent) reported that
they are meeting their expenses with little or nothing left over after
bills are paid, and an additional 8 percent said they can't meet their
household expenses. In addition, 95 percent of consumers surveyed said
they would have to change their lifestyle if they lost part of their
family's income for three to six months. As a result, they find
themselves in an unsettling financial predicament, and yet only about
half of the respondents report having short- or long-term disability
insurance to cover their needs should the unexpected occur.

"Americans are trying hard to make ends meet and are also feeling
the pinch that comes with debt. The delicate budget balance they try
to navigate could be upended by a misfortune, such as a disability,"
said Ron Gendreau, executive vice president of The Hartford's Group
Benefits Division. "What's more concerning is that many Americans are
braving this risk without income protection at the time when they need
it most."

While one in four survey participants said they believe they are
more likely to win a lottery than suffer from an injury or illness for
three to six months, U.S. workers have a one-in-three chance of
becoming disabled at some time during their working years, according
to the U.S. Social Security Administration.

"Many people dream about a large financial windfall. The
unfortunate reality is that odds are far more in favor of experiencing
a disability than celebrating a lottery win," Gendreau said.

Lack of Awareness

Many people are unaware of the looming vulnerability they face,
according to The Hartford's survey. Sixty-seven percent of survey
participants pointed to accidents or injuries as the top cause of
short-term disability claims, but one in four workers said they don't
have disability insurance because they are healthy and unlikely to
become disabled.

"When it comes to the gamble we all make with our health,
ignorance isn't bliss, and it's dangerous in this case. Our claims
records show that illnesses and medical disorders, such as cancer and
depression, not accidents, keep most employees off the job," Gendreau
said. "Our research shows that Americans are not doing all that they
can to fortify their family finances."

Low-cost Safety Net

The Hartford's research found that the barrier to disability
insurance was not access but cost. A vast majority of workers (80
percent) said they can obtain income protection through the workplace.
However, 44 percent of workers surveyed said they're having a
difficult time paying for benefits.

"We understand that employees are being squeezed by rising
expenses on all fronts. During tough times it's more important than
ever to have a safety net of insurance coverage to protect yourself
from financial hardship," said Gendreau. "Most people might not
realize how affordable group disability coverage is. You can spend a
relatively small amount - about a dollar a day or the cost of a cup of
coffee - and safeguard your income for a lifetime."

The Hartford survey also identified other hurdles to protection.
One in five respondents took issue with two aspects of benefits
enrollment - filling out paper forms and calculating benefits
expenses.

Employees surveyed said they depend on information from their
employer and insurance providers to make decisions about benefits,
such as life and disability insurance. In fact, 22 percent of those
who don't have disability insurance said they didn't have enough
knowledge to make the decision to purchase the coverage.

"Knowing that consumers are relying on us, The Hartford is
committed to delivering benefits enrollment materials and programs
that are easy to understand and simple to use. We want to make it
quick and easy for consumers to sign up for benefits that protect
their families," said Gendreau. "We have a responsibility to help
employees understand insurance coverage and make the right decisions."

For The Hartford's survey, independent market research agency
Opinauri, Inc., conducted an online survey polling 971 U.S. adults,
aged 18-64, in February 2008. Survey data was re-balanced to a
nationally representative sample of 750 U.S. adults aged 18-64. Most
survey participants were married with children, working full time and
earning between $50,000 and $100,000 annually. The margin of error was
+/- 3.1 percent.

About The Hartford

The Hartford, a Fortune 100 company, is one of the nation's
largest diversified financial services companies, with 2007 revenues
of $25.9 billion. The Hartford is a leading provider of investment
products, life insurance and group benefits; automobile and homeowners
products; and business property and casualty insurance. International
operations are located in Japan, the United Kingdom, Canada, Brazil
and Ireland. The Hartford's Internet address is www.thehartford.com.

HIG-L

Some of the statements in this release may be considered
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. We caution investors that these
forward-looking statements are not guarantees of future performance,
and actual results may differ materially. Investors should consider
the important risks and uncertainties that may cause actual results to
differ. These important risks and uncertainties include those
discussed in our Quarterly Reports on Form 10-Q, our 2007 Annual
Report on Form 10-K and the other filings we make with the Securities
and Exchange Commission. We assume no obligation to update this
release, which speaks as of the date issued.

The Hartford
Kelly J. Carter, 860-843-9420
Kelly.carter@thehartford.com
or
David Potter, 860-843-8993
david.potter1@thehartford.com

Copyright Business Wire 2008