Voluntary Insurance benefits have become an integral part of a valued benefit program because of the diverse needs of today's workforce. However, recent studies suggest that around 70% of employers believe their present benefits package suits the demands of their employees, while at the same time only about half of the employees would agree. Brokers should consider working in new diverse insurance offerings into their clients' benefit programs.
The term "voluntary insurance benefits" has been the prevailing term used to describe insurance benefits that fall outside of the core benefits employers offer their employees. However, recent trends in workforce dynamics and HR trends suggest that the word voluntary should be dropped when describing these insurance benefits because employees don’t consider them voluntary at all. And in many cases, will leave employers to find them at other workplaces
According to Greg Callahan, national director of voluntary benefits for CBIZ, which helps organizations manage employees, voluntary insurance benefits help employers retain employees who lean to the customization choices available with voluntary benefits packages.
This term encompasses a wide range of traditional benefits, including group life, disability, dental, and vision insurance. Today, however, when discussing voluntary benefits, the emphasis is frequently on "growth" products, which fall into one of three categories:
Supplemental health insurance. This includes critical illness, cancer, accident, and hospital indemnity.
Non-medical or non-insurance products. This includes pet insurance, identity theft protection plans, and pre-paid legal service plans.
Supplemental life insurance. This includes universal life, term life, or whole life coverage.
Putting together supplementary benefit packages is a clever method to help clients get more value from the benefits you provide, and it can help you stand out as a trusted advisor. This technique can increase perceived value for employees at little to no additional expense to employers. You have the option to highlight frequently overlooked synergy between several benefits.
Some voluntary insurance benefits complement each other well, such as long-term disability, critical illness, and life insurance, all of which are excellent additional benefits. Personal protection benefits such as legal insurance and identity theft are also related. Benefits focusing on financial wellness, such as student loan repayment, savings programs, and financial education or counseling, can potentially be a potent combination.
This stands to the benefit of providing voluntary insurance benefits; as high-deductible plans become more common and more expensive, the necessity for plan design flexibility makes these advantages an important tool for brokers. Brokers that provide voluntary benefits can assist their clients by doing the following:
· Increasing their medical coverage by filling up the gaps left by typical health insurance plans
· Providing employees with the flexibility to personalize their protection
· Providing employees with additional protection at no cost
According to a survey, 70% of employers believe their present benefits package suits the demands of their employees, while only half of the employees agree. The working and managing populations are clearly at odds. This is where the broker can help by finding the voluntary insurance benefits that the employee population actually requires.
Not voluntary anymore
Don’t get caught leaving voluntary insurance benefits off the menu. Partner with a team that has experience with voluntary insurance and other innovative employee benefit offerings to help bolster what you can offer your clients and their employees. Contact the team at Premier Worksite Solutions today to learn more.