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In today’s workplace, many employees think enrolling for health benefits during open enrollment is mundane, which leads many to stay with the same benefits from the previous year. In fact, according to the 2016 Aflac Open Enrollment Survey, 90 percent of employees say they choose the same benefits year over year.¹ However, as employees go through major life changes such as marriage, birth/adoption, job promotion or home ownership, they should be aware of how these life events affect their benefits selections. Recognizing this trend, brokers have the opportunity to educate their clients annually on how to encourage employees to thoroughly review their benefits selections, including voluntary insurance, to ensure they make changes that are aligned with their lives today, not yesterday.

With enrollment season right around the corner, now is the perfect time to reiterate to businesses that the following life stages are reasons their employees should take stock of current benefits.

Marriage

When planning for a wedding, many employees probably don’t find themselves including “update benefits” on their checklists before the big day. When a change in marital status happens, it’s important that the couple discusses their coverage options and updates their health care coverage enrollment accordingly. Remind employers that employees may be able to share their benefits once they have exchanged their vows.

Birth of a child

Employees must ensure that every family member has appropriate health care coverage, especially once they have children. Children can mean additional doctor visits — whether they’re routine or the result of an injury or illness. Brokers can reiterate to employers that offering accident coverage can help protect employees’ finances. This policy not only covers emergency treatments, X-rays and physical therapy, but also specific injuries such as fractures, dislocations and concussions. Additionally, remind clients that as their employees add new family members, they may also want to consider adding or updating their life insurance coverage.

Career advancement

When employees receive a job promotion, brokers can remind employers to mention that it may be beneficial to consider increasing contributions to their 401(k). After all, moving ahead at work usually means a salary increase. Putting away funds for retirement will help ensure an employee doesn’t have to downgrade their post-career standard of living instead of enjoying the spoils of a successful career. Promoted employees should also consider evaluating current levels of disability coverage to see if changes are needed to help protect their new paycheck and lifestyle in the event of an accident or illness.

Purchasing a home

For many people, a new home is a place to build a life and start a family, but it can be the most expensive purchase most will ever make, as well as their biggest monthly expense. Remind employers that employees should consider the changes they’ve made in the past year — such as the purchase of a new home — to determine how they may need to update their insurance coverage during open enrollment.

In the event of an accident or illness, disability insurance can help employees ensure that they have funds needed to pay living expenses like their monthly mortgage payment, and focus on recovery. Additionally, adding life insurance is one way that employees can ensure their loved ones have the financial means to remain in their home and help maintain their standard of living in the event of an unfortunate circumstance.

The employer review

Just as it’s critical for employees to regularly review their benefits based on current or upcoming life changes, it’s equally important for companies to review the options they make available. When businesses offer voluntary insurance policies, it is a win-win for them and their employees.

This article is for informational purposes only and is not intended to be a solicitation.

^{1 The 2016 Aflac WorkForces Report is the sixth annual Aflac employee benefits study examining benefits trends and attitudes. The study, captured responses from 1,500 benefits decision-makers and 5,000 employees from across the United States.}

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Ensuring employees update their benefits package during different life stages

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