What most of us know — or think we know — is that the traditional family structure is shifting. Cohabitation, delayed adulthood, boomerang children, single parents, blended families and multi-generational households are becoming more the norm. "Traditional family" is now essentially an outdated term.
Understanding these changes and their impact on employee benefits is crucial for advisors and their employer clients. There are several factors driving these trends:
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Almost 45 percent of all births (for those under age 44) are now outside marriage, according to the Centers for Disease Control and Prevention.
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The number of American adults who have never been married is at an historic high, and more adults are marrying later in life or cohabitating instead of marrying, according to the Pew Research Center.
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Almost one-quarter of young adults (ages 18-34) have "boomeranged" back home due to economic conditions, according to the Pew Research Center.
Because the worksite is a primary means for workers to gain access to insurance, we're already seeing changes to employer-based insurance that reflect these shifts. For example, mandated health insurance covering children up to age 26 and domestic partner coverage are now both commonplace.
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People are relying on the financial support of loved ones more extensively than ever before. Yet, it comes at a time when life insurance ownership is at its lowest in 50 years. And more than two-thirds of American workers don't have access to income protection in the event of a disabling condition. Parents, especially those nearing retirement, are increasingly finding they are underprepared, causing them to delay their retirement.
When visiting with clients, open the conversation with a redefinition of family. Position the value of benefits in a new way, helping them to recognize that employee populations are dynamic and comprised in ways that could look quite different from the traditional sense.
And, just as families aren't typical anymore, neither are life events. Today's families experience a host of new triggers not previously considered, such as paying off large student loans or when a child begins school (reducing or eliminating the cost of child care). These are events that can free up dollars to apply to voluntary products, thereby closing gaps in their coverage.
Other life events, such as deployment in the military or an elderly parent moving in, are times when financial protection needs shift. Look for opportunities to convey these concepts to employers and their employees during enrollment periods.
Whether it's about serving a dynamically changing employee population — or attracting and retaining talented employees — employers who recognize and adapt to these shifts will be well served. After all, to grow their businesses, employers need their talented people to be healthy, actively at work and productive.
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