Employee expectations about benefits packages have changed. Are you leaving money on the table by not suggesting voluntary benefits to your customers?
Back when many of us joined the workforce, employers picked up most (or all) of the cost of premiums for health insurance, vision, dental, and maybe even life insurance. This was especially true for union workers. Many companies also offered employee pensions, matching 401K funds, and other benefits designed to improve retention rates within organizations and send the signal to employees that longevity was important. In short, companies took care of their employees and hardly anyone offered voluntary, employee-paid benefits.
Increasing insurance premiums, the Affordable Care Act, and a number of other factors have changed the benefits employers provide. At the same time, it’s also changed employee expectations.
Today, employees consider an affordable healthcare plan with a decent choice of providers, even if they’re paying a large percentage (or all) of the premiums, a good benefits package. Similarly, employees are happy to have the option to purchase dental, vision, and group life / AD&D coverage, at rates vastly reduced from what they could purchase privately.
A strong ancillary benefits package, even voluntary benefits, continues to be a driver of employee retention and satisfaction.
Survey Says… Employees Want Ancillary Benefits
A recent report by Harris Interactive showed that 65 percent of employees want life, dental, and vision insurance—even if they have to pay for it. Yet, fewer than 50 percent of employers today offer these benefits.
In many cases, employers feel their employees won’t want to pay for something that was, previously, fully subsidized by the employer. But expectations have changed and employees understand that they might have to absorb some of the cost of ancillary benefits—they might even factor this into their initial salary negotiations.
For P&C insurance brokers, failing to suggest voluntary
ancillary benefits to your disability insurance customers is like leaving money on the table.
Voluntary Benefits Don’t Cost Your Customers
Voluntary benefits packages that cover life insurance, dental and vision coverage, and even enhanced disability insurance could be the easiest sale you make—because you don’t have to sell it at all.
Voluntary benefits don’t cost your customers—that is, employers—any money at all. The costs are passed on to the employees, while the commission comes directly to you. It’s up to the employers to sell the benefits packages. And it should be an easy sell, since many workers today want these benefits and are willing to pay for them. All you have to do is make the offer.
Customer Education Increases Sales
Perhaps, in the same vein as brokers who sell 401K benefits plans, you bring in a catered breakfast and spend an hour showing employees how much they could save by purchasing voluntary benefits through their employer.
The premiums are deducted pre-tax, which is especially desirable to millennials, who are more likely to be single apartment-dwellers without a lot of tax deductions. And the savings over time adds up, making it a worthwhile expenditure for employees with or without families.
Smart employees are beginning to realize that the savings off the cost of braces, cleanings, and corrective lenses—to name just a few expenses—is well worth monthly pre-tax insurance premiums. It’s up to you, as the insurance broker, to offer employees the option of voluntary benefits.
Could you increase your commissions and expand your book of business with voluntary benefits? Let the DBL Center help with our white glove service.