Benefits in a Time of Uncertainty

In the voluntary benefits world, claims are not typically auto-adjudicated as they are in the medical world. With auto-adjudication, claims are submitted electronically and most pass though the system without being looked at by a live person. In contrast, voluntary life, disability, critical illness, and accident claims simply don’t lend themselves to an automated process. As a result, carriers have more personal contact with claimants and can more effectively survey them to determine their satisfaction with their benefits.

At ING U.S. Insurance, we recently conducted a survey to better understand how benefits impacted employees’ lives. The results were gratifying, showing how much employees value not only the benefits, but also their medical coverage. I have to admit I wasn’t sure what to expect, but the survey confirmed for me how valuable these benefits are. Claimants truly see the benefit. Among the claimants surveyed, 93% said they would buy voluntary insurance if making the purchase decision again and 92% would recommend this coverage to a friend or family member. These already-high percentages were even higher for critical illness claimants.

While I firmly believe voluntary benefits are secondary to a medical plan, I also believe a well-constructed portfolio of voluntary products can be a fantastic complement to most medical plans. Apparently, claimants agree. When participating in my company’s study, claimants stated that:

• “This benefit gives me a peace of mind knowing it’s there if the need arises.”
• “It is a comfort to have the extra coverage. Because you just never know….I am adopted and do not have any family history.”
• “I took things for granted and had to realize no one is exempt from illness.”
• “Being a single parent, this benefit is extremely comforting to know it’s there – it makes me feel safe.”

As employers begin to contemplate 2013 plan designs, it’s a good time for financial professionals to approach their employer clients to discuss how voluntary benefits can help complement and strengthen their employee benefits offerings. Determining a benefits plan is undoubtedly complex for employers, yet the impact and value of voluntary benefits is a powerful selling point.