The Greek philosopher Aristotle once said, “The ideal man bears the accidents of life with dignity and grace, making the best of circumstances.” Today’s insurance experts might add that it’s easier to make the best of circumstances when backed up by voluntary insurance.

But what type of voluntary insurance? That depends. Some voluntary products are appropriate for all workers, but the need for others varies by career stages and lifestyles. Let’s take a quick look at new, middle-career and home-stretch workers to see what types of voluntary insurance they need and why.

New workers

In the first decade of their careers, workers are finding their financial footing. They may be be paying off college loans or living with mom and dad to save money. Many stay on their parents’ major medical insurance plans until age 26, when they must obtain their own coverage. Life is expensive and beginning salaries might not stretch far, so new workers should select from products that are appropriate for their lifestyles:

Accident insurance: Many younger workers lead active lives, have longer work commutes and are parents of small children who may be accident-prone.
Short-term disability insurance: Just over 1 in 4 of today’s 20-year-olds will become disabled before reaching age 67.³ A disabling injury, no matter how brief the downtime, can be debilitating for those who are just starting out and haven’t had time to build nest eggs.

Middle-career workers

As employees settle into their careers, they are often more family-focused. They may be married, raising children and keeping a close watch on aging parents or grandparents. They are likely to be more aware of hereditary health issues. Retirement is a long way off, but they should be planning for it.

According to the 2015 Aflac WorkForces Report, 52 percent of American workers have less than $1,000 on hand to pay out-of-pocket expenses associated with an unexpected serious illness or accident.⁴ For that reason, middle-career workers should consider the voluntary products that are appropriate for new workers, as well these coverages:

Hospital indemnity insurance: Hospital inpatient care accounts for nearly a third of U.S. health care costs, and there’s no relief in sight. The average length of a hospital stay is 4.6 days at a cost of $11,000.² A bill that sizable could take years to pay.
Life insurance: A higher income means a higher standard of living for an employee’s family to maintain in the event of death.
Critical illness insurance: Those with family histories of cancer, strokes or heart attacks should consider purchasing this type of coverage when they’re younger and healthier, as it can be less expensive to obtain than it may be in later years.

Home-stretch workers

Employees in the final years of their careers are likely making all-time high salaries and putting money away for retirement, but life events can get in the way: a change in marital status, adult children returning home and elder care can all be expensive. Unfortunately, illnesses and injuries are increasingly common with age, so home-stretch workers should evaluate their personal circumstances and consider life, critical illness, hospital indemnity and other coverages that can help protect everything they’ve spent their careers building.

Financial safety is playing it safe Life is unpredictable, and getting sick or becoming injured is something most people never expect to happen. To ensure all employees get the coverage that best suits their needs, tailored benefits packages are essential. Offering voluntary insurance will not only help employees better customize their insurance coverage, but will also help provide added financial protection no matter the career stage.

¹National Safety Council, “Injury Facts 2014 Edition,” accessed Feb. 16, 2016 - http://www.nsc.org/Membership%20Site%20Document%20Library/2015%20Injury%20Facts/NSC_InjuryFacts2015Ed.pdf

² Agency for Healthcare Research and Quality, Trends and Projections in Inpatient Hospital Costs and utilization, 2003-2013, Statistical Report #175, accessed Feb. 16, 2016 - http://www.hcup-us.ahrq.gov/reports/statbriefs/sb175-Hospital-Cost-Utilization-Projections-2013.pdf

¹National Safety Council, “Injury Facts 2014 Edition,” accessed Feb. 16, 2016 - http://www.nsc.org/Membership%20Site%20Document%20Library/2015%20Injury%20Facts/NSC_InjuryFacts2015Ed.pdf

² Agency for Healthcare Research and Quality, Trends and Projections in Inpatient Hospital Costs and utilization, 2003-2013, Statistical Report #175, accessed Feb. 16, 2016 - http://www.hcup-us.ahrq.gov/reports/statbriefs/sb175-Hospital-Cost-Utilization-Projections-2013.pdf

³U.S. Social Security Administration, “Social Security Basic Facts,” accessed Feb. 16, 2016 – http://www.ssa.gov/pressoffice/basicfact.htm

⁴ 2015 Aflac WorkForces Report, accessed Feb 16, 2016 - https://www.aflac.com/business/resources/aflac-workforces-report

1National Safety Council, “Injury Facts 2014 Edition,” accessed Feb. 16, 2016 - http://www.nsc.org/Membership%20Site%20Document%20Library/2015%20Injury%20Facts/NSC_InjuryFacts2015Ed.pdf

2 Agency for Healthcare Research and Quality, Trends and Projections in Inpatient Hospital Costs and utilization, 2003-2013, Statistical Report #175, accessed Feb. 16, 2016 - http://www.hcup-us.ahrq.gov/reports/statbriefs/sb175-Hospital-Cost-Utilization-Projections-2013.pdf

3U.S. Social Security Administration, “Social Security Basic Facts,” accessed Feb. 16, 2016 – http://www.ssa.gov/pressoffice/basicfact.htm

4 2015 Aflac WorkForces Report, accessed Feb 16, 2016 - https://www.aflac.com/business/resources/aflac-workforces-report

¹National Safety Council, “Injury Facts 2014 Edition,” accessed Feb. 16, 2016 - http://www.nsc.org/Membership%20Site%20Document%20Library/2015%20Injury%20Facts/NSC_InjuryFacts2015Ed.pdf

² Agency for Healthcare Research and Quality, Trends and Projections in Inpatient Hospital Costs and utilization, 2003-2013, Statistical Report #175, accessed Feb. 16, 2016 - http://www.hcup-us.ahrq.gov/reports/statbriefs/sb175-Hospital-Cost-Utilization-Projections-2013.pdf

³U.S. Social Security Administration, “Social Security Basic Facts,” accessed Feb. 16, 2016 – http://www.ssa.gov/pressoffice/basicfact.htm

⁴ 2015 Aflac WorkForces Report, accessed Feb 16, 2016 - https://www.aflac.com/business/resources/aflac-workforces-report

Instant Insights /

How voluntary insurance helps workers of all stages

More From HR Executive

Related Stories

Recommended For You