LIMRA’s (Life Insurance and Market Research Association) 2015 U.S. Worksite Sales survey shows that voluntary benefits sales increased 5 percent between 2013 and 2014, marking four straight years of growth. Many experts agree that voluntary benefits will play an increasingly important role in American workplaces.
“Voluntary benefits are on a growth trend, in part because they allow employers to enrich their employee benefits portfolio at no direct cost,” said Ron Neyer, assistant research director, LIMRA Distribution Research. “In a recent LIMRA study, 7 in 10 employers who offer voluntary benefits said that these options help improve morale for existing employees and assist them in attracting and retaining new talent.”
Earlier LIMRA research found nearly 60 percent of employees prefer to buy health insurance benefits at work and nearly half prefer to buy life insurance through their employer. However, employers think the enrollment process could be improved. Of those surveyed, 40 percent said it was extremely or very difficult to communicate the value of voluntary benefits with employees age 30 and younger. More than one-third (37 percent) said it was also difficult to communicate their value to employees between ages 31 and 40.
What would make enrollments more effective? Most observers agree that more opportunities for one-on-one discussion and education would increase employee understanding of their voluntary benefit options—and increase enrollments.
For more information on how we can make benefit enrollments easier and more effective, please contact USI.