Voluntary Benefits for the Multi-generational Workforce

T H E M U L T I - G E N E R A T I O N A L WO R K F O R C E

S O C I E T A L T R E N D S & V O L U N T A R Y B E N E F I T S

H OW T O L A U N C H A V O L U N T A R Y B E N E F I T S P R O G R A M

T H E R O L E O F T H E V O L U N T A R Y B E N E F I T S C O N S U L T A N T

other popular voluntary benefits

THE MULTI-GENERATIONAL SAFET Y NET

6 TRENDS IN VOLUNTARY BENEFIT PRODUCTS

Voluntary Supplemental Life Many businesses offer their employees some level of employer-paid life insurance coverage, typically one to three times the employee’s annual salary. This coverage is usually not enough to provide survivors with adequate financial protection if the employee should die. A payout of five to 10 times an annual salary is considered adequate protection to cover funeral expenses, mortgage, rent, car payments, college tuition, and future lost income replacement. Supplemental Life insurance is the most common and popular Voluntary Benefit offered at the workplace. 75% of full-time workers have access to Life Insurance. 25 Affordable rates and convenience (payment of premiums through payroll deduction) are two reasons for this product’s popularity. Features often include guaranteed issue, spouse and dependent children coverage, spouse-only coverage and portability. Carriers also offer additional features such as accelerated death benefits, where the employee receives a defined portion of the insurance benefit while still alive if they become terminally ill. Another feature is waiver of premium benefits if the employee becomes completely disabled. The payout upon death is reduced when the policyholder receives a defined portion or a waiver of premium benefit. There are essentially two forms of life insurance: Term Life and Permanent Life, and both can be offered as Voluntary Benefits. Term Life Insurance protects the employee’s beneficiaries in the event of the policyholder’s premature death. Permanent Life insurance protects an employee’s beneficiaries whenever the policyholder dies, provided premiums have been paid for. Two categories of Permanent Life include Whole Life insurance and Universal Life Insurance. Voluntary Vision Voluntary Vision plans are affordable and desired by employees. These plans typically offer one of the best returns on investment through access to deep discounts on popular frames and contact lenses. They also offer discounts for lens prescriptions and provider visits. More than 80% of employers offer Voluntary Vision. 26 Voluntary Vision plans help employers control the cost of their medical plan because regular eye exams help detect diabetes, high blood pressure, high cholesterol, and other sight-related medical conditions that often don’t have warning signs.

OTHER POPULAR VOLUNTARY BENEFITS

ACCIDENT INSURANCE

CANCER PROTECTION

CRITICAL ILLNESS

DISCOUNT MEDICAL, DENTAL, VISION, PRESCRIPTION

EMPLOYEE CONVENIENCE/DISCOUNT PURCHASING

PERSONAL EXCESS LIABILIT Y UMBRELLA

GROUP LEGAL

HOME/AUTO

HOSPITAL CONFINEMENT/MEDICAL BRIDGE

PET DISCOUNT CARE

VOLUNTARY DENTAL

VOLUNTARY SHORT-TERM DISABILIT Y & LONG-TERM DISABILIT Y

VOLUNTARY SUPPLEMENTAL LIFE

VOLUNTARY VISION

25 U.S. Department of Labor data 26 Prudential Financial Survey

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