Employee benefits: It’s time to tell a new story

In 2013, Towers Watson surveyed 320 large employers about their “health care and total rewards strategies” in light of health care reform. Nearly half expected voluntary benefits and services to become more important over the next five years. A majority of employers offered disability (80 percent) and accident (68 percent) insurance benefits, and critical illness was cited as one of the top offerings being considered over the next two years.

The next generation of employees expects coverage options that enhance their work-life balance, improve their overall quality of life and safeguard their financial future. In the race for qualified candidates, a well-designed benefits package will become increasingly useful to employers in recruiting and retaining top talent.

Focus on the Future

The financial habits of Millennials have been well documented by a variety of sources, but this group remains an untapped market for the insurance industry. Reaching this generation of consumers requires thoughtful, targeted messages that address their unique needs and long-term financial goals.

In regard to finances, Millennials play it safe. A 2014 study by the Brookings Institution showed that more than half (52 percent) of adults ages 21-36 have their savings parked in cash. Millennials have seen the stock market falter, have watched their parents struggle through two recessions and are burdened with significant student debt. As a result, some experts have deemed Millennials “the most financially-conservative generation since the Great Depression.”

Unfortunately, life is not without risk. In December 2012, Disabled Worker Beneficiary Data from the Social Security Administration reported that more than 2.5 million disabled workers were in their 20s, 30s and 40s. Faced with an illness or injury, a young adult without the necessary cash reserves could be forced to mortgage their future by racking up credit card debt to pay medical bills. For a nominal monthly cost, accident or long-term disability coverage offered through the workplace provides a benefit that can reduce the financial burden on an employee, thus safeguarding their financial future.

Portability also comes into play when marketing to Millennials. A 2012 Forbes article regarding the job hopping habits of this generation reported that 91 percent expect to stay in a job for less than three years.

Continuing healthcare coverage after leaving a job is often cost-prohibitive, so many new employees experience a gap in coverage until they are eligible for benefits with their new employer, which could take up to 90 days. Few are aware that, during that time, they may be able to maintain accident, critical illness and disability income coverage to help protect their assets should they experience an illness or injury. That is why carriers like Voya Financial continue to devote resources to raise awareness among consumers about the ability and the need to continue employee benefits policies when changing jobs.

The Solution is in the Story

It goes without saying that a life-threatening health event can have a profound negative impact on a family’s financial well-being, but even a short-term illness or injury can derail one’s retirement readiness. To demonstrate that point, we need to present common, real-life situations that can help make products like disability income, critical illness and accident insurance more than just theoretical concepts. By demystifying these products, and presenting them as the solution to a problem, we’re able to tell a new story — one that positions employee benefits as an important part of every American’s overall retirement readiness strategy.