Voluntary Benefits – Products to Add to Your Benefits Package
Prudential’s Sixth Annual Study of Employee Benefits: Today & Beyond indicate that 85% of employers offer one or more voluntary benefits and nearly half offer four or more. There are three key categories of voluntary benefit. *see footnote
Products to Add to Your Benefit Package
Health-care costs will continue to rise in 2013 and many employers are looking for cost-saving measures, such as increasing deductibles and decreasing other benefits. For many employers, adding voluntary benefits is a way to compensate for cuts in the benefits package and to give employees a way to purchase products they may not have the ability to obtain outside of the workplace. Voluntary benefits allow an employer to increase the benefits package offered and increase employee satisfaction.
- Financial Protection Products. These products address key financial risks that nearly everyone is exposed to.
- Medical Protection Products. These products are generally designed to complement health insurance offerings with coverage for specific medical issues or needs.
- Convenience Products. Employees typically purchase these products outside the workplace for convenience, but some employers may provide them at the workplace for convenience, and potentially with an employer-negotiated discount.
Where Should an Employer Start?
In “VOLUNTARY BENEFITS: A Critical Tool for Improving Employees’ Financial Wellness,” Prudential’s findings indicate that, at a minimum, employers should offer employees access to voluntary life, disability and long-term care insurance, because nearly all individuals need the protection these products offer. In addition, employee satisfaction can be increased by offering voluntary dental and vision products, if an employer-paid option is not already being offered. In fact, dental insurance is the second most popular benefit with employees with 51% of employees saying that it is very important. Other benefits, such as critical illness, cancer and hospital indemnity policies, provide financial protection during a serious illness.
*The Prudential Insurance Company of America, “VOLUNTARY BENEFITS: A Critical Tool for Improving Employees’ Financial Wellness,” Page 4.