It's a general perception that people who see a glass as half full are optimists and those who see it as half empty are pessimists. But in our business, that may not be true. Let's consider a half-empty glass as a marketing opportunity.

The half-empty glass is disability income protection. In fact, our metaphorical glass is more than half empty because of gaps at both the employer and employee level. Consider these facts: First, SHRM's 2017 Employee Benefit Study indicated that only 65 percent of employers offer short-term disability income protection and 72 percent of employers offer long-term disability protection. Second, only about half of all eligible employees enroll in disability income protection. Put these together and you have a big gap between the benefits employees should have and those that actually protect them.

There is a significant gap in life insurance penetration, as well. According to LIMRA, only about two-thirds of employees purchase life insurance through their employer when offered. That leaves a gap of around one-third of all employees.

The gaps we observe in penetration rates of these fundamental benefits provide us with opportunities in two dimensions: improving our messages to employers and to employees.

At the employer level, life insurance and disability income protection coverage should be considered part of the base of benefits. Employer-provided life insurance should always be supplemented by voluntary life insurance options. Employers generally provide a base of life coverage to employees, but individual needs usually exceed the amount funded by employers. Similarly, disability income protection with options for both short- and long-term coverage should always be available.

At the employee level, voluntary benefits provide a great service. LIMRA studies of insurance buying behavior show that many people do not buy insurance because they become “stuck shoppers.” Consumers often become stuck because they do not know which insurance company to trust, whether they will be turned down due to health issues, or what plan design to choose—to say nothing of how much coverage they need or the cost of coverage.

Employers take charge of many of these decisions in planning their voluntary benefits. We help as well, during enrollment, when we show employees the cost of the products per pay period. This helps them see how affordable voluntary products can be.

Finally, payroll deduction allows employers to take the burden of paying premiums off the employees' shoulders. In all, voluntary plans help stuck shoppers become happy buyers.

Improving employee participation starts with the employer. Employers want voluntary benefits to help attract and retain talented employees. If an employer thinks that “supporting voluntary benefits” means simply loading them into a system, they are missing the value of voluntary. We need to be able to proactively present voluntary benefits so they can make informed decisions.

Every month, we see articles enticing brokers and consultants to market voluntary plans that answer much less basic needs than disability income protection and life insurance. Let's not make the mistake of missing fundamental opportunities to chase secondary needs. Let's fill up those half-full glasses!

Instant Insights /

The appeal of a half-empty glass

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