Voluntary Benefits
Big Company Benefits for Small Companies
78% of employers with over 1,000 employees offer voluntary benefits*
27% of employers with less than 100 employees offer voluntary benefits**
Employers of all sizes recognize they cannot keep the status quo and expect different results. Many are taking measures to change their programs from top to bottom, focusing on creative benefit designs, additional communication methods and new ways to deliver value not only to employees, but also to the corporate bottom line. A substantial number of companies see the current economic crisis as an opportunity to consider new benefits strategies they would not have considered otherwise. Almost three-quarters (70 percent) of them are specifically increasing communication to address employee benefits concerns. And 57 percent do not plan to cut back on investments in benefits communication and education.
Voluntary benefits, such as life, accident, cancer, supplemental health, critical illness and short-term disability, are designed to enhance existing core benefit offerings and to provide employers with the flexibility to modify their existing lines of coverage while providing the opportunity for employees to mitigate their exposure and/or increase their coverage.
Voluntary insurance plans allow employers to offer a cost-effective, expanded benefits package at little to no direct cost to them. Employees choose the benefits that best meet their individual and family needs and typically pay for these products themselves, usually through convenient payroll deduction. Individual voluntary benefits are owned by employees, so if they ever leave the company they can keep their coverage. Some group voluntary plans may allow employees to convert to individual policies when they leave their employer.
Voluntary benefits are becoming increasingly more popular with employers because they:
- Provide employees with more choice, flexibility, and stability in their benefits plan options at no cost to the employer
- Provide employees the option to decide whether they want to participate
- Offer affordable and stable premiums
- Help control their company’s benefits costs
- Give you a competitive advantage in employee recruitment and retention
- Are often offered on a pre-tax basis
*Target Model and Larger Case Research: Breakout for Benefits Communication and Education, Colonial Life, July 2008
**Small Business Owners: 2009 study, LIMRA International, 2009
As you contemplate searching for the right insurance professional to assist you with your employee benefits program ask yourself these questions:
Q. Do I know if my benefits program is costing me more than necessary?
Q. Do I understand the benefits and limitations of our current insurance plans? Do my employees?
Q. When is the last time I had an independent review of my entire benefits program?
Q. Does your agent provide a comprehensive marketing analysis with your best benefit options well in advance of your renewal for you to make an informed decision?
Interested in Solutions? click here >