More employers are turning to voluntary benefits as a cost-effective way to help employees protect their financial assets. Employees, too, are looking for more robust benefit packages.
A 2017 Aflac WorkForces Report reveals that 77 percent of employees expect their employers to offer dental insurance, while 70 percent want vision insurance. Nearly half of large employers who responded to a Benefitfocus study in 2017 report that they offer at least one of the three most common voluntary income protection benefits: accident, critical illness and/or hospital indemnity insurance.
An important reason for the increased interest in voluntary benefits is the Millennial generation’s desire for benefit packages that can be personalized to their needs. Many Millennials (those born between 1980 and 2000) are saddled with $35,000 in student loan debt. Low wages and, until recently, a weak economy forced many workers to live at home or stay on their parent’s medical insurance until they reach age 26. Employer-sponsored financial wellness programs can help with financial stressors such as student loans, debt consolidation and tax issues.
With skyrocketing health costs, employers are opting for plans with higher deductibles as a way to keep premiums low. This means more out-of-pocket costs for employees. Voluntary benefits packages are a way to reduce the financial burden.
Technology also has made it easier and more cost effective for employers to offer a wide range of valuable benefits. Employees can enroll online, and many administrative processes have been automated, saving paperwork and time.
USI Northeast can help you create a voluntary benefits plan to fit the needs of your workforce.