Brokers: Are you taking these steps to show your customers the value of voluntary benefits?
As healthcare premiums continue to rise while coverage levels drop, smart business owners and HR directors are finding ways to recruit new talent and retain employees by offering voluntary ancillary benefits. This opens an opportunity for P&C and health insurance brokers to tap into new streams of revenue by bundling ancillary benefits with mandatory insurance coverage like DBL and TDB.
But knowing how to communicate these benefits is important for HR directors to get buy-in from employees. Insurance brokers are in a unique position to help spread the word about the advantages of voluntary benefits.
These tips can help.
1. Get buy-in from top executives first.
If a broker is to successfully sell voluntary benefits to an organization, it starts at the top. Focus on selling a comprehensive package of voluntary benefits to the c-suite, that way those executives (including the HR director) can knowledgeably spread the word to their employees.
Many voluntary benefits, including Group Life / AD&D, provide tiered coverage levels, where high earners gain the greatest return on their investment, so it makes sense to sell to the c-suite first.
2. Be prepared with answers to common employee questions.
Most employees thinking about investing in voluntary benefits want to know:
– How much will they save compared to buying coverage individually?
– What are the risks if they don’t invest? (i.e., How much will it cost if they have to pay for these unexpected expenses out-of-pocket?)
– Are there any tax benefits to the investment?
They might also be interested in knowing the percentage of their colleagues who’ve invested in voluntary benefits, and which benefits other people like them have found to have the greatest value.
3. Use technology as well as face-to-face meetings to convey information.
Consider setting up a Benefits Calculator on your website, or publishing a blog that addresses frequently asked questions and spotlights industry trends. You’ll establish your brokerage agency as an expert, gain trust with customers, and potentially attract new leads, too. HR directors, busy executives, and business owners can then use these resources to make informed decisions about voluntary benefits and also share the information with their employees. (Don’t forget to check The DBL Center blog regularly, too, for information you can share with your customers.)
4. Tailor benefits packages to your customers with personalized options.
Today’s workplace is unique in that it spans three to four generations of workers, from the incoming “Founders’ Generation” or Gen Y, to Millennials, GenX, and Boomers, who still make up about . While financially savvy Millennials are likely interested in 401K packages to begin planning for retirement now, GenXers may be thinking about life insurance as they face middle age. Dental and vision coverage might appeal to Boomers with mounting medical needs.
If you can, poll employers and their employees about which benefits will appeal the most, and put together insurance bundles that meet these needs. The DBL Center is here to shop the best benefits packages for you based on what your customers want.
5. Know the key advantages to voluntary benefits in order to convey them to your customers.
Voluntary benefits provided through an employer offer many advantages over individual benefits. Employees are likely to find greater value in voluntary benefits—even if the employer isn’t sharing any of the cost. When they buy from a broker they trust who, in turn, uses an insurance wholesaler to find the best coverage with the lowest premiums, everybody wins. It’s all about leveraging industry relationships and insurance bundles to deliver the greatest value to the customer.
It’s also more convenient for employees to choose from a pre-selected package and then have costs deducted directly from their paychecks. Paying for insurance with pre-tax dollars results in added cost savings, too.
6. Make sure employees at every level understand benefit offerings.
Employees can’t invest in voluntary benefits if they don’t know what their company offers. While buy-in from top execs is key, smart brokers will also look for opportunities to speak directly to employees at every level.
Consider hosting a lunch-and-learn, where you outline the advantages of voluntary benefits in a fun, informal setting. You can even bring in a comedy act to break the ice and make attendance at the meeting more enticing. You’ll get employees in a good mood and build trust, which will make them more likely to buy.
Let Your Insurance Wholesaler Help
As your back-office support staff, The DBL Center Ltd. is here to provide you with the tools you need to better sell voluntary benefits and provide you and your customers with the white glove service you deserve.