Beyond health benefits: Growing need seen for estate planning services

• Key Insight: Learn how estate-planning and legal benefits are becoming core supplemental offerings for brokers.
• What's at Stake: Failing to expand benefits risks retention, competitive positioning, and exposure during massive wealth transfer.
• Expert Quote: Producers must help employees beyond health benefits, says Brian Lacher, Mammoth Insurance Solutions.
• Source: Bullets generated by AI with editorial review

This is part one in a two-part series about supplemental benefit offerings.

It's understandable why so much attention at open enrollment is devoted to finding health insurance that's both affordable and comprehensive, but it's a fool's errand to underestimate the importance of certain ancillary and nontraditional benefits.

Brokers and advisers need to round out the product and service suite they suggest with offerings that pad income protection, secure peace of mind and fulfill evolving demands. Doing so will obviously close coverage gaps and serve as a competitive leg up. 

Brian Lacher, CEO of Mammoth Insurance Solutions, believes producers have an obligation to help employers look out for their people beyond just health benefits. 

"Most employees don't realize that setting up an estate plan on their own can easily cost thousands of dollars, yet there are resources available through workplace benefits that offer legal services and support for as little as $15 a month," he says. "Helping employees access that kind of protection is one of the most meaningful things we can do to set their families up for success."

One emerging area is the growing need for estate planning, which has never been stronger considering that $84 trillion is expected to pass from baby boomers to younger generations over the next two decades. 

The problem is that as many as 70% of Americans don't have any estate planning in place, including a will, trust, health or funeral directive, according to Empathy's most recent annual research report, The Grief Tax. Empathy, whose digital platform helps families navigate the emotional and logistical challenges of loss, has set out to create a standard for modern family care and workplace benefits.

Read more: This platform is helping employers normalize grief at work

Industry leaders can help prepare the employee populations they serve for the largest wealth transfer in U.S. history by spotlighting this important product line. Ron Gura, co-founder and CEO of Empathy, knows that brokers and advisers are always looking for opportunities to be more consultative and empower clients with innovative approach. 

"They want benefits they can vouch for — something that has good funding, good rewards and good utilization," he says. "They want to meet those needs holistically from legacy planning all the way to loss."

Empathy offers a unique personalized holistic legacy planning solution. LifeVault allows users to store affairs, quickly create legal documents like wills, healthcare directives and power of attorney, and securely share essential information with loved ones. It's available to employees enrolled in group term life insurance and lifetime life insurance through major carriers such as Voya Financial, Aflac and New York Life. 

"We're trying to democratize access for estate planning just as we democratize access for grief and estate settlement," Gura explains. 

Ending family feuds

The most-requested legal services include will preparation and estate planning (57%), family law services (38%) and real estate matters (26%), notes a comprehensive new study by LegalShield. 

As many as 56% of employees surveyed reported facing legal challenges outside their place of employment with 94% experiencing related stress and 61% requiring time off work to deal with those issues.

Read more: Free legal advice helps employees navigate serious medical conditions

Other key findings from Empathy show that 52% don't know whether their parents stored any important documents, 43% of those 55 years old and over said they lack an advocate to look out for their best interest and 35% faced or know someone who faced family conflict due to lack of planning. 

"The main reason people go to probate court is family feuds," Gura says. "That's what happens when you don't have a clear plan in place. People don't know what dad wanted. They start guessing, then they start fighting, and there's money and there's taxes, and it gets ugly." 

Nearly one quarter of employees have recently left or considered leaving their company due to lack of workplace benefits, which is up from 15% in 2023. Noting that the focus is on financial benefits, Gura cites a recent Bank of America report showing 26% of workers now expect their employers to provide financial guidance, which was double the rate from just two years ago. He describes estate planning and estate settlement, along with budgeting tools and financial education workshops, as strong levers for peace of mind. 

"They want to know what's going on with their own financials," he says. "It's not just about the paycheck, childcare and housing anymore. They expect the employer to be involved and leverage their buying power."