Choosing Between Pet Insurance and Life Insurance: Assisting Employees in Picking the Right Voluntary Benefits

Your workforce is enthusiastic about embracing supplementary benefits, but are they making the best selections? According to Voya Financial, 63% of employees express a likelihood of enrolling in voluntary benefits designed to complement traditional offerings like healthcare and retirement through their employer in 2023. While this eagerness is positive, effective communication is essential to ensure that your employees acquire the necessary protection, not just the latest trendy benefits they desire.

“Pet benefits, identity theft, prepaid legal – these are the attention-grabbers that employees quickly explore and become knowledgeable about because they sound different from disability, life insurance, dental, medical, or any other standard benefit,” notes Eric Silverman, founder of Voluntary Disruption advisory. This interest can be leveraged to guide employees towards often-overlooked benefit options like hospital indemnity and critical illness, which may prove more essential in the long run, Silverman suggests. Despite their lower popularity and appeal compared to, say, a complimentary gym membership, these benefits are more likely to be needed to maintain employees’ financial, physical, and mental well-being.

From the traditional to the contemporary, we interviewed Silverman and adviser Drew Neslin, head of ancillary benefits solutions at BCS Financial, to gain a better understanding of the supplementary benefits crucial for employee wellness and those that will excite them about the perks offered by their employer.

Disability and Accident Plan Insurance:

In situations where gaps in medical insurance exist, disability and accident insurance can provide financial coverage to employees. It is important to educate employees that disability insurance isn’t solely for workplace accidents; it replaces a portion of their income when they cannot work due to illness or injury, covering 50-80% of their income and essential expenses like food, mortgage, and loan payments, according to Guardian, an insurance company. Eric Silverman emphasizes the significance of disability insurance, stating, “It is the most critical thing you can ever cover because it safeguards your income-earning ability. It is essentially insurance for your paycheck.”

Life Insurance:

Life insurance is one of the most commonly offered voluntary benefits to protect employees financially. Employers are advised to collaborate with brokers to employ various communication methods for maximum understanding and engagement concerning traditional voluntary benefits like life insurance, including a mix of team meetings, webinars, emails, and printed materials, and making someone readily available to answer any inquiries.

Critical Illness and Hospital Indemnity Insurance:

Critical illness insurance helps alleviate the financial burden in the event of an employee being diagnosed with an illness covered by their policy, such as cancer, stroke, and heart attack. Hospital indemnity insurance covers hospitalization expenses, offering direct payments even when no out-of-pocket costs are incurred. These benefits should not be underestimated, especially for employees aged 40 and older, given the increasing risk of such conditions.

Pet Insurance:

Nearly half of Gen Z and millennials have expressed a preference for remaining with an employer that offers pet benefits, according to Nationwide. Employers can use this as a conversation starter to pique employees’ interest in supplementary benefits that fill gaps in their healthcare plans, emphasizing the importance of being prepared for unexpected emergencies.

Identity Theft:

With identity security concerns dominating headlines, identity theft protection has become a highly desirable benefit. It not only covers expenses related to identity theft but also provides risk monitoring and reimbursement in cases of stolen funds.

Fertility Benefits:

While almost 90% of employees are willing to consider changing jobs for access to fertility benefits, a significant number of employers do not offer them. Employers should collaborate with their brokers to ensure effective communication about fertility benefits and other supplementary benefits to recruit and retain talent. Your broker or consultant team should be more than just benefit providers; they should also serve as a full-service marketing division, helping employers communicate benefits during open enrollment and engaging employees and their families year-round.