Employees are increasingly viewing voluntary benefits as an important
component of their overall benefits package. According to The
ABCs of Voluntary, the fourth in a series of five
research briefs based on The Prudential Insurance Company of America’s
(Prudential’s) Eighth Annual Study of Employee Benefits: Today &
Beyond, for 71% of employees, the offer of voluntary benefits
increases the value of their company’s overall benefits program, up from
63% in 2012.
Employees report cost as the biggest advantage to the voluntary option
followed by convenience and enrollment without a medical exam. “As
people juggle their professional and personal obligations, the worksite
offers a convenient and cost-effective way to gain valuable financial
protection. Employers who provide effective communication, education and
tools as part of the enrollment process help employees evaluate their
own personal protection needs and make the choices that are right for
them,” said Bob Patience, vice president, voluntary benefits, Prudential
Group Insurance.
The value of voluntary benefits is also recognized by employers, with
over half (51%) reporting they are currently implementing or have
already implemented offering more voluntary products, up from 32% in
2012. Similar to employees, cost remains the biggest perceived advantage
from the perspective of employers. For employers that have already
ramped up their voluntary benefits offerings, 49% report they have been
successful in achieving their desired cost savings, up from 28% the year
before. Voluntary benefits offer employers the ability to maintain a
competitive and valuable benefits package in a cost-effective way. The
convenience of voluntary benefits along with offering employees
economical options were also cited as advantages by employers.
“Employers realize that a robust voluntary benefits offering is the
right thing to do for themselves and for their employees’ overall
financial wellness,” said Patience.
In addition to employees and employers, brokers also expect voluntary
benefits growth, with 65% expecting the demand will increase in the next
five years. Other key findings include:
-
Two-thirds of brokers, most employers and nearly half of employees
consider the provider name an important factor when considering
enrollment in voluntary plans.
-
Employers are open to the idea of sharing information through a TPA to
the carrier on an employee’s life event so the carrier can reach out
regarding evolving benefit needs. Employees agree, with 63% reporting
they would be very interested in this type of communication.
-
Although benefits education and awareness activities typically occur
during an annual or open enrollment period—not during specific life
events—nearly half (46%) of brokers say they prefer multiple
enrollment opportunities for different benefits during the course of
the year outside of the annual enrollment period (off-cycle
enrollment), up from 33% in 2012. Sixty-seven percent of brokers say
they believe employees would probably or definitely make better
benefit decisions if their life and disability insurance enrollment
period was separate from their medical insurance.
“Brokers, employers and employees all express a level of desire for
off-cycle enrollment opportunities. Employees can be overwhelmed by the
number of products to consider during a single enrollment period. Use of
targeted off-cycle enrollments allow employees the opportunity to
clearly assess their needs and carefully consider the products being
offered,” said Patience.
The
ABCs of Voluntary is the fourth in a series of five research
briefs that highlight the major findings from Prudential’s Eighth
Annual Study of Employee Benefits: Today & Beyond. The research
was conducted via the internet during August and September of 2013, and
consisted of three distinct surveys—one for plan sponsors, another for
benefits brokers and consultants and a third for plan participants.
Prudential Group Insurance manufactures and distributes a full range of
group life, long-term and short-term disability and corporate and
trust-owned life insurance in the U.S. to institutional clients
primarily for use in connection with employee and membership plans. The
business also sells critical illness insurance, accidental death and
dismemberment and other ancillary coverages and provides plan
administrative services in connection with insurance coverages.
Prudential Financial, Inc. (NYSE:PRU) a financial services leader, has
operations in the United States, Asia, Europe, and Latin America.
Prudential’s diverse and talented employees are committed to helping
individual and institutional customers grow and protect their wealth
through a variety of products and services, including life insurance,
annuities, retirement-related services, mutual funds and investment
management. In the U.S., Prudential’s iconic Rock symbol has stood for
strength, stability, expertise and innovation for more than a century.
For more information, please visit http://www.news.prudential.com/.
Group coverages issued by The Prudential Insurance Company of
America, 751 Broad Street, Newark, NJ 07102.
Prudential, the Prudential logo, and the Rock symbol are service
marks of Prudential Financial, Inc. and its related entities, registered
in many jurisdictions worldwide.
0262821-00001-00
Copyright Business Wire 2014