Aflac Incorporated ( AFL Quick Quote AFL - Free Report) recently introduced an enhanced version of its income protection insurance product, Individual Short-Term Disability Insurance. The upgrade came in the form of including mental health coverage in the product.
Shares of Aflac have lost 1.3% on Aug 19, replicating declines in the broader markets.
It's worth mentioning that Aflac’s product offers a vital workplace perk packaged as a monthly earning to an employer’s workforce. The income will provide a cushion to an employee while absent from work due to a disability from a mental health condition or any other injury included in the coverage.
The coverage assured by the improved Individual Short-Term Disability Insurance to policyholders now includes disabilities arising from common mental health conditions like schizophrenia, bipolar disorders, depressive disorders, anxiety disorders, eating disorders, etc.
Raising further optimism for policyholders, the product assures to exclude rate increases from the expanded coverage offered by the enriched product.
Additionally, the newly-advanced product will comprise optional riders to help boost policyholders' income protection coverage in the days ahead. As a result, employees can customize their coverage per distinctive individual needs and budgets, and subsequently, receive treatment, recover quickly and resume work.
Lack of such products can induce out-of-pocket expenses to exert pressure on the finances of employees unable to work due to a disability. Equipped to handle such headwinds, the Individual Short-Term Disability product of Aflac tends to ease employees’ physical, financial and mental stress.
The recent product enhancement bears testament to Aflac’s consistent efforts to boost offerings in the mental health space. This apart, the move will likely bolster its reputation of being one of the leading providers of short-term and long-term disability benefits throughout the United States.
The product upgrade seems aptly timed since Americans have been grappling with rising mental health issues for quite some time. The COVID-19 pandemic only aggravated the scenario further, necessitating the need for accessible and better mental health services. This clearly indicates solid demand for behavioral healthcare services, which gives Aflac a perfect opportunity to capitalize on. In February 2022, AFL collaborated with the digital health platform NeuroFlow to integrate a mental health solution into its Group Long-Term Disability offering.
Shares of Aflac have gained 9% year to date compared with the
industry’s rally of 7.7%. AFL currently carries a Zacks Rank #3 (Hold). Image Source: Zacks Investment Research Stocks to Consider
Some better-ranked stocks from the insurance space are
MGIC Investment Corporation ( MTG Quick Quote MTG - Free Report) , The Hartford Financial Services Group, Inc. ( HIG Quick Quote HIG - Free Report) and Radian Group Inc. ( RDN Quick Quote RDN - Free Report) . While Radian Group sports a Zacks Rank #1 (Strong Buy), MGIC Investment and Hartford Financial carry a Zacks Rank #2 (Buy) at present. You can see . the complete list of today’s Zacks #1 Rank stocks here
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Hartford Financial’s bottom line outpaced estimates in each of the trailing four quarters, the average being 34.08%. The Zacks Consensus Estimate for HIG’s 2022 earnings indicates a 17.2% rise, while the same for revenues suggests 4.2% growth from the respective prior-year reported figures. The consensus mark for HIG’s 2022 earnings has moved 6.8% north in the past 30 days.
The bottom line of Radian Group outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, the average surprise being 29.51%. The Zacks Consensus Estimate for RDN’s 2022 earnings suggests a 32.7% improvement from the prior-year reported figure. The consensus mark for RDN’s 2022 earnings has moved 16.1% north in the past 30 days.
Shares of MGIC Investment and Radian Group have gained 5% and 6.9%, respectively, year to date. The Hartford Financial stock has lost 2.2% in the same time frame.