State health insurance exchanges could sell up to $60 billion of policies in the first year and nearly $200 billion by 2019.1 How much of that is premium you will lose?
The brokers who will succeed are the ones who are ready. If you are not selling voluntary employee benefits, now is the time to start.
Why Sell Voluntary Benefits?
- Maintain your employer relationships. Employers may look to state health insurance exchanges for their employees’ medical insurance. Continue to maintain the role of trusted advisor with your groups by offering voluntary benefits. Voluntary benefits may help employers maintain good morale at no cost while offering employees valuable protection.
- Offer additional benefits to your existing groups. Employers need creative solutions to attract and retain quality employees. Voluntary benefits allow employers to address their employees’ insurance needs. Employees can elect the amount of coverage they need without creating an additional financial burden for the employer.
- Earn higher commissions. Voluntary products traditionally pay higher commissions than employer-paid products. This provides an opportunity to earn new commissions to offset what you may lose to health care reform.
Give your employees the piece of mind that voluntary benefits can provide
Why Offer Voluntary Benefits?
- Reduce costs. Offering voluntary products to employees removes additional financial stress from employers. Employees can elect the amount of coverage they need without creating an additional financial burden for the employer.
- Attract and retain employees. Employers need creative solutions to attract and retain quality employees. Voluntary benefits allow employers to address their employees’ diverse insurance needs in flexible ways.
- Your employees need it. Almost 8 in 10 Americans do not have a personal life insurance agent to turn to2. Offering voluntary products at work provides the millions of Americans who do not have a personal agent the opportunity to purchase the insurance they may need.
Did you know that 30 percent of employers said they might stop offering employer-sponsored insurance in 2014?3
Voluntary benefits can help you fill the gaps left by your employer.
Why Purchase Voluntary Benefits?
- Fact: Only 44 percent of U.S. households have individual life insurance. This is a 50-year low.2 Are you providing for the futures of those you love? Life insurance is a valuable tool to provide for our loved ones in the event of a premature death. It provides accessible funds for a family that just lost its main source of income.
- Fact: Nearly 8 in 10 workers are living paycheck to paycheck. One in five report they have missed payments on their bills.4 Your future depends on your earning ability. You might have insurance protection for your house, your car and your health, but have you protected your ability to earn a living? Short-term disability insurance does just that: it provides benefits that can be used for everyday expenses when working is impossible.
- Fact: Just over 1 in 4 of today’s 20-year-olds will become disabled before retirement. More than one in five Americans will become disabled for at least five years during their working lives.5 Can you afford to put your income-earning ability at risk? Long-term disability insurance is a great way to help secure your financial future should an injury or illness occur. Without long-term disability protection, several years’ worth of hard earned savings can be wiped out in a very short time.
- Fact: Approximately every 34 seconds, an American has a heart attack. Every 40 seconds, someone in the U.S. has a stroke.6 Devastating illness happens more often than we think, and recovering can be expensive. A critical illness benefit provides coverage in addition to major medical insurance, covers numerous conditions and provides extra money needed to financially survive a critical illness. It also helps cash-strapped Americans cover many of the additional expenses associated with recovery.
1 PwC, "Change the Channel, Health Insurance Exchanges Expand Choice and Competition," Health Research Institute, July 2001.
2 LIMRA, "Facts About Life 2010," September 2010.
3 McKinsey Quarterly, June 2011. "How U.S. health care reform will affect employee benefits," p. 2.
4 Survey conducted by CareerBuilder, May18-June 3, 2010.
5 "Commissioner’s Disability Insurance Tables A and C, assuming equal weights by gender and occupation class for The Council for Disability Awareness, "Disability statistics" on www.disabilitycanhappen.org (accessed on August 15, 2011).
6 American Heart Association, Heart Disease and Stroke Statistics—2010 Update, Chapters 5 and 6.