Insurance brokers are always looking for new products and services that will give them the edge.
Those who specialize in employment benefits find themselves in a curious situation: voluntary benefits have been around for decades, but they suddenly seem to be a bigger factor in a broker’s success.
Voluntary benefits are those benefits above and beyond traditional health insurance and retirement plans. They are called voluntary benefits because employers can choose whether to contribute to their costs. Some do, and others do not.
As for brokers, their main priority is to come up with benefits packages their clients find attractive. Everyone offers health insurance and a 401(k) these days, so brokers need something different. They need new products that make them more competitive. Enter voluntary benefits.
They Are Where The Money Is
Employee benefits brokers generally get paid on commission. They need to sell more products to boost their incomes. So what it boils down to is this: finding voluntary benefits employers are willing to buy translates into more income for the broker. And these days, voluntary benefits are where the money is.
In a blog post published near the end of 2022, Dallas-based BenefitMall cited survey data showing that brokers offering both standard and voluntary benefits generated more revenue than their peers who left voluntary benefits off the table.
Combining traditional and voluntary retirement benefits can make an employer’s benefits package a lot more attractive to employees. When employees are happy with their benefits, so are their employers. So the idea is to come up with a package that will appeal to a given workforce. Thankfully, there is no shortage of possibilities.
Benefits Not Around 20 Years Ago
Some of the voluntary benefits being offered today were never even a consideration 20 years ago. Identity theft protection immediately comes to mind. Identity theft existed at the turn of the 21st century, but not to the extent it exists today. Living without identity theft protection in 2023 is just asking for trouble.
Employers can obtain ID theft protection on behalf of their employees more cheaply than the employees could get themselves. Therein is the main advantage of accessing a voluntary benefit through one’s employer. If you are going to purchase identity theft protection anyway, you might as well get a better deal through your workplace benefits plan.
Another interesting offering in 2023 is pet insurance. What does pet insurance do? It gives pet owners access to cheaper veterinary care from in-network providers. It offers discount deals on everything from pet food to grooming supplies and toys to accessories. Some policies even cover the costs of retrieving a lost pet.
Not Satisfied With Health Insurance
Voluntary benefits can include everything from financial planning services to accident insurance. But regardless of the benefits an employer chooses to add to its package, one thing must be made absolutely clear: modern employees are no longer satisfied with health insurance alone. The Great Recession has proved as much.
The Great Recession was mainly a reaction to the COVID pandemic and some of its fallout. Workers faced with the realities of COVID began re-evaluating their priorities. Many of them – to the tune of millions, actually – decided they were no longer satisfied with the status quo.
These same employees are now more likely than ever to quit their jobs in search of greener pastures. If that means the same job with a different employer offering a nice voluntary help package, jumping is no longer a big deal. And now you know why voluntary are a bigger part of a broker’s success nowadays.
Wrapping Up:
Voluntary retirement benefits are the solutions that every employee wants to have after their retirement. Some of the voluntary retirement benefits are entirely based on retirement planning. But as a broker, things are different. If you are not satisfied with the modern benefits, then these are processes that you can look at and apply to get better advantages. Which voluntary benefits do you like to have? You can share your opinion through the comment sections.
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