Voluntary benefits

In a new report titled Opportunities in Reaching the Middle Market with Life Insurance: New Pathways to Growth, Conning estimates the middle- market life insurance protection gap to be $10.2 trillion - a 56% increase when compared to the firm's last study of the middle market in 2006. The total protection gap across all income brackets has more than doubled.

Not only is it painful for an employee to hear the news that their loved one has suffered a heart attack, but the unforeseen costs of health care will soon take a physical, emotional and financial toll if they are not prepared.

Americans may be overly optimistic when it comes to thinking they won't ever be diagnosed with a serious illness or experience an accident, according to a recent survey.

More plan sponsors continue to start wellness programs, while the majority of organizations with programs currently in place are looking to expand and invest, according to the 2011 Willis Health and Productivity Survey by Willis North America's Human Capital Practice.

Although it's hard to start a conversation about death and dying, providing employees with a benefit option that will help them ensure their end-of-life affairs are in order can not only provide peace of mind, but also can keep loved ones from paying a heavy price both emotionally and financially for a funeral they were not prepared to plan.

One of our clients, a Midwest employee benefits agency, came to us with a serious problem. Revenues were down 19% over the previous year, despite an increased marketing budget. They spent their $137,000 budget on brand-building - including a $15,000 sponsorship of the 18th hole at the local pro-am celebrity golf tournament, a $10,000 sponsorship of the Heart Gala, full-page glossy ads in the local business magazine and half-page ads in the weekly business paper. While they couldn't say for certain what, if any, new business resulted from these efforts, the net result was an almost 20% drop in revenue. Not surprising, but still a terrible waste of resources.

There are questions about the future of the group long-term care market, as two insurers have stopped offering the product in the past 17 months.

While the ever-rising cost of health care continues to be a top concern for employers and employees alike, there is at least one employee benefit headed in the opposite direction. "I always facetiously use the phrase 'life is cheap,' says Bob Harnett, vice president of Lutherville, Md.-based Silberstein Insurance Group. "Life insurance on an employer-paid basis has gotten to be very inexpensive."

Ellen M.* is a 47-year-old single mom whose four-year-old son is diagnosed with something called pervasive development disorder not otherwise specified, a disorder on the autism spectrum. While he's very verbal, he sometimes struggles with expressing his needs. He has behavioral issues and several other medical issues, such as vision and gastrointestinal problems.

Employers want more timely access to reporting and more transparency from their wellness vendors, according to a recent survey of 430 employers conducted by OptumHealth.

Voluntary benefits have been a growing trend for almost 15 years. Recent surveys show employee-paid benefits are on the minds of brokers, employers and the workforce alike. According to a 2011 study by LIMRA, 30% of U.S. employers are considering adding a voluntary benefit to replace employer-paid and contributory benefits within the next two years - affecting between 19 million and 45 million employees. These numbers aren't surprising. Even with slight improvement in the U.S. unemployment rate, employers have responded to the poor economy and rising health care costs by making the tough decision to shift the costs of certain benefits to their employees.

Are you still using just a hammer in your benefits practice? Too many benefit brokers have been showing up at the jobsite equipped only with the hammer of health insurance, limiting their ability both to add new revenue and to be consultative and solve other HR problems.

Discount dental plans have, for decades, been on the fringes of the benefits world, existing as an individual product almost exclusively. But as employers continue to shift costs, move to consumer-driven health plans and, in some cases, discontinue dental coverage altogether, voluntary discount dental plans could be poised for growth.

From carriers to brokers, enrollers to consultants, the message was the same to the more than 600 attendees gathered Tuesday in Atlantic City, N.J. for the Workplace Benefits Renaissance: Voluntary benefits are a mounting source of opportunity for those who are prepared to take advantage

It is becoming increasingly common to offer nontraditional benefits, or benefit "perks," to employees. As companies struggle with the cost of traditional benefits such as medical and dental plans, offering additional perk-type benefits are intended to boost employee morale.

At Children's Creative Learning Centers child care centers, we think quite a lot about company culture, our own and those of our clients. When discussing the ways our centers can reflect the values of the companies they reside within, we help clients uncover and distill the elements that define them as an organization and discover those they want to pass along to their children. In the larger world of work-life and family-friendly programs, we have found that company culture is one of the main factors that determines the success of these programs and that, in turn, work-life programs can be a tool for a real cultural revolution.

Not only is it painful for an employee to hear the news that their loved one has suffered a heart attack, but the unforeseen costs of health care will soon take a physical, emotional and financial toll if they are not prepared.

While working for a benefits enrollment firm, I managed to get a coveted appointment with the senior vice president for voluntary benefits at a major regional brokerage. He started the meeting with an invitation to pitch: "We already work with several enrollment firms. Why should we work with you?"

Arranging and financing long-term care is an issue everyone will face yet no one wants to talk about. However, following the Health Department's move to table the Community Living Assistance Services and Supports Act, planning for long-term care is becoming part of the national conversation - and that presents opportunities and challenges for employers.

As employees take on more responsibility for paying for health care, voluntary benefits can provide much-needed additional coverage. EBN spoke to a number of voluntary benefits providers to get their thoughts on the major trends they see coming in 2012. Not surprisingly, all the trends and influences in the HR world at large - health care reform, employer cost-shifting, technology and communications - affect the voluntary benefits industry as well. Here, we provide a summary of key trends, along with charts and data to help employers plan their voluntary benefits strategy going forward.