There's An Appetite For Life Insurance Among Employees

As for answers, the ING survey offers some insight. For example, 67% of the adults surveyed said their death or the death of a spouse would have an extremely or very negative effect on their family’s financial future. In fact, many said that such events as falling home prices, a stock market crash, Social Security becoming insolvent, an economic recession, a pay cut and higher interest rates on loans and mortgages would have less of a negative impact on their family’s financial future than premature death.

In view of that, an active benefits broker can position group life as essential ‘protection’ for employees’ savings, rather than solely money for a funeral. In other words, employees should view their employer group life as a protective benefit for their family by putting a plan in place based on their needs and life stage.

It’s worth noting that despite life insurance’s relatively low profile, 85% of the adults surveyed agree that people “in their situations” should have life insurance.

Their reasons for doing so vary among generations: Generation X (ages 33-42) and Y (ages 18-32) were more likely than their older counterparts to envision life insurance handling a broad variety of potential needs. For example, they were more likely to view life insurance as a resource to fund funeral costs and household expenses. Surprisingly, they also were more likely to view life insurance from a legacy standpoint, seeing it as a means to leave behind money “enough so that no one in their family ever needs to work again.”

Thus, as the demographics of the U.S. continue to change, so must brokers and employers change their way of thinking about life insurance options for employee groups.

Nearly every large group employer now has online tools and calculators to encourage employees to calculate their life insurance needs to secure a meaningful amount of coverage. But, these tools must be accompanied by sophisticated educational approaches.

Broker help may take the form of assistance with shaping educational programs, holding workshops and seminars, providing even better automated enrollment tools, and delivering highly responsive insurance options that meet the needs of a changing workforce.

With the right effort and momentum, benefits brokers can assist clients in helping Americans close the gap between their wish for financial security and their ability to achieve it. They also can help improve employees’ perceptions of the value of their benefits–and continue to build a successful broker business in the process.