Voluntary Benefits Voice - November 2023

November 2023

Voluntary Benefits Voice M A G A Z I N E

Caregiving for Employee Caregivers

Voices of Voluntary Benefits: The Industry’s Impact

Legal Coverage Market Update

Advisory Board

Mark Rosenthal PwC

Seif Saghri BenefitHub

Jessica DePhillips Mercer

Michael Naumann Reliance Matrix

Jack Holder EBIS

Jennifer Daniel Aflac

Michael Stachowiak Colonial Life

Key Contributors

Steve Clabaugh CLU, ChFC

Editorial Staff Editors Trevor Garbers Heather Garbers For Media and Marketing Requests Contact: Heather@voluntary-advantage.com and Trevor@voluntary-advantage.com

FEATURED ARTICLES 01 Legal Coverage: Market Update 02

Voluntary Benefits Offer a Competitive Advantage

03

Voices of Voluntary Benefits The Impact of Voluntary Benefits

04 Market Predictions with Winston Benefits 05 What Business Are We Really In?

Legal Insurance Continues to Be a Valuable Voluntary Benefit

Caregiving for Employee Caregivers

From the Editor...

There has been a great deal of discussion as of late around what is the newest buzz word to take over the voluntary benefits industry by storm.

Traditionally, we have been hearing words like transparency, branding, claims integration, mitigation, digitalization and so on throughout 2023. And yes, without doubt, I’m probably missing one or two buzz words that may be near and dear to you on a personal level, and I apologize if I’ve missed the mark from your perspective by not stating your favorite buzz word in print for 2023. Personally, when I start to hear a buzz word popup during a discussion multiple times, I like to reflect and consider what is or what will be the impact be if that buzz word takes shape and sticks within our marketplace.

What valued outcome if integrated within our marketplace will that buzz word have from financial, personal, and legal aspect on our marketplace, our clients and most importantly our valued policyholders.

Now, if you are still reading my article and following along you might be asking yourself where is he going with this topic? As always, thank you for sticking with me and drum roll please…here is the word I believe we should place in front of any other buzz word as we enter 2024, Mentoring.

By Trevor Garbers

With zero hesitation in my voice, we will suffer as a marketplace and society if we continue devaluing mentoring and mentorships within our marketplace. Have you ever compared a discussion of a successful salesperson or successful executive to someone who flips companies or carriers every two to three years? I’ll promise you the common theme is one has a mentor, and the latter does not.

If we are not investing in our people, then our marketplace has a very bleak future. I’m consistently asked by trading partners and industry colleagues these three same questions: Who’s winning the business today?

What’s your top carrier representative doing to win this business? Where do you think our industry will be in five years? And when you break these questions down into granular form one common theme comes through every time – It’s carriers who are investing in their people via training and mentorship programs, carrier representative who are being mentored by successful leaders and, our marketplace place will be much smaller in five years as a result if we don’t start placing a greater value on mentoring. For me, when I reflect on the value of mentoring, I know it will have a direct ROI on our marketplace, our clients and our policyholders in addition to, the synergies mentoring brings to the valuation of our marketplace as a whole will lift our marketplace to new heights.

The Verdict is In: Legal Insurance Continues to Be a Valuable Voluntary Benefit

By Eastbridge Consulting Group, Inc.

We would all agree health insurance is essential to help protect us from both routine and unexpected medical costs — but what about legal costs? From wills and real estate transactions to divorces and bankruptcies, professional legal services can cost hundreds to many thousands of dollars, often at an already stressful time. That’s why many voluntary carriers, brokers, employers and employees are showing significant interest in legal insurance. These prepaid legal plans offer advice, drafting and review of legal documents, and consultation or representation in court, typically at a fraction of the cost associated with hiring a lawyer. If this nontraditional benefit isn’t already on your radar, it might be time to consider it.

Employee ownership of legal insurance has dropped in recent years, but there’s still strong interest in buying it. Fewer employees own nontraditional products such as legal plans, identity theft protection and pet insurance than before the pandemic, possibly due to inflationary pressures on worker wallet share. But Eastbridge’s 2023 “Market Vision™—The Employee Viewpoint©” report shows that more than a third of employees who don’t own legal insurance are interested in buying this coverage on a voluntary basis.

Brokers are increasingly selling nontraditional benefits, including legal insurance. Three-fourths of brokers surveyed for this year’s “Voluntary Benefits: Brokers Back in Business” Spotlight™ report say that they sell nontraditional products on a regular basis, up from 60% just a year ago. Nearly a third of voluntary brokers and one in five benefit brokers say they regularly sell legal plans, ranking this product among the top nontraditional products for both types of brokers.

Benefit Brokers

Voluntary Brokers

21%

30%

Employers may have a significant opportunity to beef up their benefits packages by adding legal insurance. According to the 2022 “Market Vision™— The Employer Viewpoint©” study, only 33% of employers currently offer this benefit, but another 24% say they’re interested in doing so. And they’re likely to find their employees are willing to share or pay the full cost of this coverage — by far the most common funding arrangement for employers already offering legal plans. Larger employers are much more likely to include this coverage in their benefits packages, so smaller groups could represent a market opportunity.

Carriers are likely to increase their ability to offer legal insurance. Only 25% of carriers include legal insurance in their portfolios, according to the 2022 “Voluntary Product Trends” Frontline™ report. That ranks it below mental health benefits, identity theft protection and financial tools among nontraditional benefits. But legal plans are in the top four products carriers say they plan to offer in the next two years. As demand for legal insurance grows, carriers that want to stay competitive will need to be able to offer it or connect employers to other companies that do.

Legal Plans Offered on Any Funding Basis by Employer Size

Legal insurance is a product employees want and are willing to pay for, but access is still limited. Employers who want to create a more comprehensive benefits package, and brokers and carriers who want to reach an underserved market, should consider adding legal plans to their portfolios.

Nick Rockwell President

Danielle Lehman Senior Consultant

Eastbridge is the source for research, experience, and advice for companies competing in the voluntary space and for those wishing to enter. For over 25 years, they have built the industry’s leading data warehouse and industryspecific consulting practice. Today, 20 of the 25 largest voluntary/worksite carriers are both consulting and research clients of Eastbridge.

Legal Coverage Market Update

By Heather & Trevor Garbers We are seeing legal coverage trending in the marketplace this year and becoming a key solution in assisting employees from a financial and mental wellbeing perspective. It is not typically a benefit that employees think they need, until they learn about all that it can do. From helping them put together their will, trust, power of attorney, to assisting with traffic tickets, disputes with contractors, debt management, family law matters, and more, the services provided by legal coverage can provide necessary support to employees throughout the year.

So what is all this buzz about Legal coverage really about? Loi Stoddard, Vice President, at MetLife Legal Plans, Tim Weber Vice President, Group Sales and Client Management at ARAG, and Emily B. Rose, President, LegalShield Business Solutions Division, are here to share some key trends they are seeing in the marketplace.

What is trending when it comes to legal coverage today?

Emily - The workforce is changing, and smart companies are evolving their benefits packages to match. Employers are moving beyond only providing basic legal services to approaches prioritizing education, prevention, and the connection between legal issues and mental health.

Resources like legal training and financial counseling align toward proactive wellness and financial stability programming. Customization is also critical - modern legal benefits packages offer specialized support tailored to the diverse needs of today's workforce.

There is also emphasis being put on the financial wellness component of these plans as many employees face financial challenges related to legal issues, such as: debt management, bankruptcy, or housing disputes.

Loi - Employers are looking for protection for diverse generations currently sharing the workforce. Now, more than ever, employers are focused on the employee experience and broad types of coverage. For employees, we are seeing several trends including: a) the desire to connect with culturally competent attorneys, b) broader coverage options, including tax preparation and caregiving, c) technology-based solutions to address simpler needs and d) creating a range of channels to meet the need of today’s omnichannel world. MetLife Legal Plans’ recently released findings from its Legal Access study, where we surveyed over 5,000 full and part time employees regarding their access to legal resources. We learned that 67% of Americans faced a legal issue in the last 5 years, but only 7% had access to an attorney.

Tim - Many people think about legal insurance in the context of estate planning, divorce and help with the occasional speeding ticket. However, the legal issues employees are dealing with have evolved dramatically in the last few years – driven by the pandemic, inflation, supply chain challenges, virtual work environments, a tight housing market and worsening economic conditions.

This environment has created more situations where an employee needs legal representation and support.

For example, during the pandemic, the number of people remodeling their homes increased dramatically. That activity has continued in our high interest rate environment, as more people decide to remodel and stay in their homes instead of moving to a new home with the amenities they desire. Those trends, along with continuing supply chain challenges, have resulted in a significant increase in people dealing with unfinished or low-quality home remodeling projects. Getting out of this stressful situation oftentimes requires the assistance of an attorney.

Our new virtual work world has also created the opportunity for people to move and relocate to different areas of the country. Moving can be a stressful event in itself, and if personal belongings are lost or damaged, it can be a time consuming and challenging process to get a full recovery from a moving company without the help of an attorney.

While many of these situations require the help of an attorney to resolve, employees may not be able to pay for the cost of legal help or don’t know how to find the right attorney to help them. A legal insurance plan provides affordable protection and helps an employee get connected to an attorney to help with their issue.

Why are employers offering legal coverage to their employees?

Tim – Offering legal insurance coverage has become a more strategic objective for employers as they recognize the impact unexpected legal issues can have on the stresses their employees are dealing with.

We recently completed a consumer research study that validated how a legal insurance plan can reduce the stress and absence rate of employees who are facing a legal issue. ·Data from ARAG’s Stress Research Study, conducted in October 2022, showed that 85% of U.S. consumers surveyed experienced a legal event in the past three years. 84% of those dealing with a legal situation reported that having a legal plan made them feel less stress or somewhat less stress overall. And 72% of those covered by an ARAG legal plan reported they did not have to miss work to handle their legal issue, compared to only 41% of those without a legal plan who were able to address their issue without taking time off work.

We also see employers offering legal insurance as part of their financial wellness objectives or as part of their initiatives to help employees with planning for the future. Employers who offer long-term care coverage are seeing the value of making sure employees have access to a legal insurance plan to formalize the documents that help them plan for a transition to additional care they might need in the future. These include documents such as: powers of attorney, living will, HIPAA release forms and hospital visitation authorizations. These documents are critical to the sandwich generation, who find themselves caring for young children and planning for their own future caregiving challenges, while also managing emerging caregiving needs for their parents or grandparents.

Emily: Several compelling reasons drive the decision to include legal coverage in employee benefits packages: Enhanced Employee Wellbeing: Employers understand that their employees' well-being extends beyond physical health. Legal issues related to family matters, financial challenges, or workplace disputes can cause immense stress and distraction.

Attracting and Retaining Talent: In today's competitive job market, Legal coverage is a valuable perk that can set employers apart from the competition.

Productivity and Focus: When employees face legal issues, their ability to focus on their jobs can be severely impacted.

Cost Savings: While it may seem counterintuitive, offering legal coverage can lead to cost savings for employers in the long run. Resolving legal issues early on can prevent them from escalating into more complex and expensive problems. Legal coverage can also help employees navigate legal challenges, potentially reducing absenteeism related to personal legal matters.

Comprehensive Benefits Packages: As employee expectations evolve, comprehensive benefits packages are becoming the norm. Legal coverage complements other benefits like health insurance, retirement plans, and wellness programs, creating a well-rounded offering that addresses many employee needs.

Supporting Diversity and Inclusion: Legal issues can disproportionately affect certain groups of employees. Offering legal coverage demonstrates a commitment to diversity and inclusion by providing resources to help all employees, regardless of their personal circumstances or backgrounds.

Peace of Mind: Knowing they have access to legal support when needed can provide employees peace of mind. This sense of security can boost morale and loyalty, contributing to a more positive workplace culture.

Loi: There are a few reasons: Solving for the needs of diverse employees and multiple generations.

It’s a benefit that anyone can use and it grows and changes with the employee – with low lift from the employer.

Employers are looking to bolster their employee benefit packages with voluntary benefits which help them promote employee wellbeing and DEI initiatives.

Employee demand for legal plans has increased year over year.

Having legal access guarantees they won’t have to deal with legal issues at work thereby increasing employee productivity and loyalty to the company.

What differentiates one vendor from another?

Loi - The strength of the attorney network, limitations to existing coverage as well as breadth and scope of coverage. I would also add omnichannel access – meeting employees where they are and how they want to engage and the ability to cover dependents on the employee plan.

Tim - As legal issues continue to evolve, it is important for a legal insurance provider to evolve their coverages and attorney network to support these new challenges.

Purchase a Home

Traffic Ticket Defense Divorce & Child Custody

Having experienced attorneys in the network has become just as important as the number of attorneys in the network. And delivering a “no-noise” service experience will always be important as employers depend on their legal insurance provider to reduce the stress their employees face. Also consider the employee support that a vendor brings. In a postpandemic society, the need for a strong customer care team is vital. Many employees may find themselves frustrated if the only way they can get help requires unreliable or confusing automation or endless phone trees. Conversely, highly trained and empathetic customer care teams can help employees feel heard, helped and protected.

Emily: The ideal provider simplifies legal protection, from streamlined implementation to superior support. Seek, above all, a true partner willing to adapt and enhance access for your workforce. Here are some key features to prioritize when evaluating providers: Seamless employer collaboration - Find an accessible, responsive partner.

Robust coverage - Look for comprehensive offerings.

Affordable pricing - Ensure value for employees.

Vetted lawyer network Established management processes are crucial.

Service focus - Seek excellence at both employer and employee levels.

Tech-enabled - Modern legal plans offer digital convenience.

Utilization flexibility - Support virtual and inperson lawyer options.

Estate Planning

Caring for Aging Parents

What buyer profiles do you typically see enrolling in legal coverage and why are they purchasing it?

Emily: Unlike other offerings tailored to niche demographics, legal plans uniquely adapt to serve diverse populations.

The intrinsic value spans generations, income levels, life stages and more. Here are some of the common threads we have observed…

Gen Z: Gen Z employees often seek legal coverage for educational purposes.

They seek guidance on understanding their rights and responsibilities, particularly in areas like renting their first apartment or navigating student loan issues.

Millennials: Millennials often focus on familyrelated legal needs, such as estate planning, marriage, divorce, and child custody issues. They also seek assistance with home purchases and real estate matters, may be dealing with student loan debt and seek legal advice on managing their finances, including bankruptcy and debt consolidation.

Gen X: are at a stage in life where estate planning, wills, trusts, and retirement planning become significant concerns.

Baby Boomers: nearing retirement or already retired, have a strong focus on estate planning, including: wills, trusts, and long-term care arrangements. Also, as health becomes a more central issue, they may seek legal help with healthcare proxies, end-of-life decisions, and medical malpractice concerns.

Loi - Everyone! This plan appeals to a broader audience including: young people just starting out who want to be empowered and self-sufficient, those considering getting married or buying a home, those looking to protect their families (financial protection, caregiving, etc.), those considering the next phase of life (estate planning and retirement), and women, persons of color, LGBTQ+ individuals, those with a disability, and other marginalized groups looking for peace of mind, council and expertise, and thinking about protecting their futures.

Tim - While we see high legal insurance purchase rates across all demographic segments, we do see differences in usage of the legal plan. Estate planning and home purchase and sale tend to be more frequent with higher income employees. Family law utilization is higher among those employees with children between the ages of 5 and 18, while it is a less used benefit for those over the age of 50. Women tend to utilize their plan at a higher rate than men do. Employees who identify as Latino or Black tend to utilize the consumer protection coverage at a higher rate, while those who identify as White or Asian tend to use their plan for the creation of a will at a higher rate than others. Legal insurance is attractive for all buyer profiles, but the reason it is attractive can be different based on the employee’s personal situation.

What are the top (3) claims you see from both a utilization and a cost perspective?

Loi - Estate planning always comes in at the top, with it being the most well understood, next would be affidavits which have so many use cases, and real estate – buying, selling, property tax assessment and home equity line of credits.

Tim - Estate planning related claims, such as wills and trusts, continue to be the most frequent claims, followed by consumer protection claims, such as disputes with a home remodeling contractor, reflecting the more prevalent legal issues in today’s world. Some of the most expensive claims we see are for divorce or family law matters, consumer protection and property protection issues, which include resolving disputes with a neighbor.

Emily - Consumer protection cases lead in both utilization and costs, with matters like debt collection, bankruptcy, and tax disputes running hundreds to thousands in fees. Estate planning follows close behind, with wills, trusts, and healthcare proxies averaging several thousand per person. Rounding out the top concerns are landlord-tenant disputes, family law issues, and traffic violations, which can also require significant legal expenditures. In times of economic uncertainty, we also see demand increase for services like: creditor negotiations, healthcare proxies, and housing assistance.

What are your tips for a successful engagement and enrollment strategy?

Tim-Gaining an understanding of the communications and enrollment infrastructure for each employer is a fundamental step in creating a successful engagement and enrollment strategy.

Some employers have a very mature and sophisticated set of employee engagement tools. Identifying how to best “plug in” to these existing tools is typically the best way to work with those employers. Some employers don’t have a deep set of engagement tools and may need more help from their broker or carrier to engage their employees. Regardless of the engagement tools used, delivering relevant content to help employees understand the value they get from their coverage will always be important. Understanding the employee segments at each employer helps with the development of examples that are relevant to each employee segment and the issues they may be dealing with.

Emily - A successful enrollment strategy begins with engagement by both employers and benefits providers. The more robust the communication strategies and the more complementary they are to the company’s existing communication strategies, the stronger the enrollment results in voluntary benefits. It is important for employers to highlight employees' needs and provide education on how different voluntary offerings can address those needs. This should be an ongoing process, not limited to open enrollment periods. By keeping employees engaged with voluntary offerings as an employer priority throughout the year, enrollment and utilization of these programs is likely to improve over time.

Various Communication Methods. Utilize a range of delivery methods and content formats to reach employees, including email, benefits booklets, fliers, the company intranet, enrollment platforms and websites and educational videos.

Matthew Ennis, DirectorProduct, Marketing and Strategy Reliance Matrix

Emily In addition to delivering the information, create opportunities for employees to learn through engagement. Employees can digest the value more by asking questions and connecting the information to their lives. Virtual sessions or inperson meetings can help providers customize the information and provide easy access for workforces in an office together or dispersed.

Ensure that enrollment platforms provide access to additional educational resources.

When possible, enable links to more comprehensive educational content from the product provider (videos, informational websites, virtual fliers, webinars etc.).

Loi - Communicate all year. Use a variety of channels to reach employees to share the value of using a legal plan.

Train the HR team. They are your first line of defense - ensure that they understand how to the plan works, use cases, and advantages, including no copays, deductibles, claim forms, or wait times.

Highlight benefits through webinars and training sessions throughout the year. Communications doesn’t need to be limited to open enrollment season.

Dedicate space on intranet/benefits portals to promote the legal plan and its benefits to employees. Leverage employee communications materials from your provider.

Make it natural to talk about using legal plans by bringing up use cases with employees. Traffic ticket defense, family planning, representing children in administrative hearings, and estate planning are just some of the conversations that can come up between colleagues.

According to the Clio 2022 Legal Trends Report, the average attorney hourly rate was $313.00 in 2022

Cost, Lack of Access, Not Knowing Where to Start...

These Reasons Should Not Hold Anyone Back From Hiring a Lawyer for Legal Needs Family Law Debt Management Estate Planning Criminal & Traffic Matters Consumer Protection Civil Damage Claims Tax Matters Services for Tenant Elder Law DEI: Adoption, Gender Identifier Change, Name Change, Immigration Assistance

Thank you to our experts who provided feedback on legal coverage in the employee benefits marketplace this month!

Loi Stoddard, Vice President, MetLife Legal Plans, U.S. Business – Loi has responsibility for Group Product Strategy, Marketing, Competitive Positioning, Sales Support, Implementation, and Account Management. She evaluates and operationalizes strategies to enhance MetLife’s offering through new features, optimized processes, innovative distribution relationships, and expansion into new markets. Loi is a sponsor and mentor to many people and serves as the executive sponsor for MetLife’s relationship with the National African-American Insurance Association.

Tim Weber, Vice President, Group Sales and Client Management, ARAG - As Vice President, Group Sales and Client Management, Tim oversees ARAG’s core sales business – group sales, sales operations, client management, product development and client support services. In this role, Tim finds his passion in engaging teams and partners to identify ways to deliver exceptional value and drive growth. Tim is a voluntary benefits industry veteran with a proven track record of delivering growth as both a benefit provider and broker.

Emily B. Rose, President, LegalShield Business Solutions Division - With over 20 years of experience in the voluntary benefits industry, Emily brings a wealth of knowledge and expertise to her role. As President, Emily is responsible for driving business development, formulating effective strategies, delivering member service, and fostering sales growth across multiple company divisions, including affinity, broker, voluntary benefits, national accounts, and small business segments.

Voluntary Benefits Offer a Competitive Advantage… with Proper Preparation and Planning

By Jessica DePhillips, Voluntary Benefits Central and East Market Leader (Mercer) Jack Holder, President, Enhanced Benefits Insurance Solutions (EBIS) Michael Naumann, Voluntary Benefits, West RPL, Reliance Matrix As prices rise on everything from college tuition to gas and groceries, offering voluntary benefits — such as supplemental health (accident, critical illness, and hospital indemnity) coverage — helps employees protect their assets and mitigate rising healthcare costs.

As these often come at relatively little cost to employees, why are so many brokers and businesses still reluctant to jump in?

Despite the advantages of voluntary benefits, we still see a lot of hesitancy in the market. Some companies feel their high wages and comprehensive medical packages are enough. Others cite lack of participation as the reason to stop offering them. And fears of overburdening staff with extra administrative work is a big factor, too. Despite the obvious value to employees, companies are also missing out on an incredible employee retention tool — and a weapon against absenteeism — due to a lack of understanding of the incredible support that voluntary benefits provide when designed, introduced, and managed properly.

When employers and employees truly understand the voluntary benefits being offered, participation increases significantly.

And to ensure employee buy-in, we need to educate them about what the benefits are and how they can use them in real-life scenarios as well as provide technical and educational support during annual enrollment, and year-round. Putting up a poster, sending an email, or mentioning the benefits once in an annual benefits meeting is not sufficient. We need to build enthusiasm and excitement as employees are educated and make the start of the enrollment period a high-energy event related to the overall culture of the employer.

A successful roll-out depends entirely on preparation, which begins with the benefits themselves, offering those that employees can afford and are relevant to based off of the stage of life they are in. Identifying the right carrier(s) and the right platform to avoid technical difficulties is key, all of which require being educated yourself, or engaging a partner who is.

The Clear Need for Voluntary Benefits Supplemental insurance helps employees avoid many financial expenses that medical insurance doesn’t cover after an illness, hospitalization, or an accident.

While the doctor's bills might get paid, what about other unexpected costs that arise? How will the employee pay their mortgage, rent, or buy groceries, etc. when they’re not earning their full wages?

Without supplemental benefits, employees may be forced to go to unexpected lengths to manage through a crisis. It is not uncommon for individuals to: Post on social media asking for financial support Use high-interest credit cards to pay unexpected medical and non-medical bills Take out a high-interest payday loans Pawn family heirlooms or even put out coffee cans at restaurants asking for help Go without recommended medications and treatments due to cost File bankruptcy due to medical bills We cannot stress the importance of financial stress and strain during a major medical event enough. All of which can easily lead to increased mental and emotional stress, exacerbating the issue compounding the problem and increasing loss of wages and productivity. It can all be a vicious cycle.

Ability to pay for airfare for friends and family to visit during a medical crisis Cash that can be used for non-medical expenses, such as pet sitting, babysitting, parking fees at medical centers, gas, bus fare/taxi rides to appointments, daycare, and custodial costs for having someone grocery shop and cook Coverage of medical supplies not covered by group health plans Gap coverage for deductibles, co-insurance, copays, etc.

Funds for modifications to your home or vehicle to aid in mobility Incentive for preventative screenings which can help prevent or identify chronic conditions early on Critical Illness plans can cover the “front end” of a Long Term Disability claim. While some employers may keep a severely disabled employee on the payroll for several months of their elimination period, a Critical illness payout designed as a non-taxable benefit could pay the insured $10K, $20K, $30K or more, tax-free, upfront upon diagnosis, before the LTD benefit even begins.

It does not have to be this way.

A Protection Tool for Employers Even high-wage earners with great primary coverage are not immune to financial loss when serious illness strikes, or an accident happens, which can and will deplete assets meant for other purposes.

In these cases, supplemental insurance helps employees protect: 401(k) plans from emergency withdrawals Permanent life insurance policies from loans Savings and checking accounts from emergency withdrawals Children’s college funds from emergency withdrawals Home equity Your current standard of living and wellbeing Future dreams and aspirations There are a myriad of other benefits as well.

In addition to helping employees avoid crippling debt and protecting hard-earned assets, supplemental coverage can provide extra benefits that are incredibly useful in times of need, including: Out-of-network care that’s not covered by group health Care overseas not covered by group health Second or third opinions not covered by group health

A Non-Occupational, Supplemental accident insurance plan may support an employer’s risk reduction strategies and protect them from “discretionary” or “questionable” (“Monday Morning”) Workers’ Compensation claims by providing cash benefits to employees to cover the out-of-pocket exposure with High Deductible Health Plans (HDHP’s) when an employee is injured off-the-clock.

A Powerful Retention and Recruitment Tool for Employers Recruiting and retaining employees continues to be major challenges for employers, and offering the right suite of benefits represents a clear competitive edge.

While savvy employees can get coverage on their own, they enjoy significant cost savings and better underwriting when they have access to group products, which often provide more robust plans with fewer exclusions and limitations than they would find on their own. Employees who purchase individual products on their own will appreciate access to these plans. We also know there is a direct correlation to employee satisfaction and the number of benefits that are offered.

In the end, when employees are satisfied with their benefits portfolio and educated enough to make informed benefits decisions, they are more satisfied with their employers.

This directly correlates to retention.

Employee satisfaction also ensures healthier, happier employees.

Now that’s a win-win for everyone!

Jessica DePhillip, Voluntary Benefits Practice Leader, Central/East Markets, Mercer - Jessica is responsible for developing solutions for employers in the mid-market and large/jumbo case employer segments, as well as serving as a regional Mercer Voluntary Benefits representative to align Marsh McLennan sister companies for cross-sell opportunities and other strategic solutions. She also serves as Co-Chair, Mercer Voluntary Benefits Diversity, Equity & Inclusion Committee.

Jack Holder, President, EBIS. - Jack partners with health brokers as an extension of their agency to pick Carriers and design Voluntary Benefit products around the objectives of each client. In addition, he helps to create and implement employee engagement strategies to assist in saving their broker partners and clients time, while giving the employees the best experience possible.

Michael Naumann, Worksite Practice Leader (Western US) for Reliance Matrix Insurance Company - Michael has over 23 years of diverse experience across employee benefits, enrollment solutions, affinity-based programs and third party administration. At Reliance Matrix, Michael creates sales and marketing strategies to accelerate worksite growth, drives business development, and influences product development.

Unlocking the Potential of Legal Plans: Navigating Demographic Influences for Tailored Plans

By John Allen, EOI Service Company Legal plans, often referred to as legal insurance or prepaid legal services, present an invaluable opportunity for employees to access legal services at a fraction of traditional legal costs. Covering a spectrum of legal issues—from consultations to document preparation and representation—these plans are gaining prominence in the voluntary benefits landscape. Understanding the demographic buying patterns of legal plans is crucial when tailoring plans and price points.

Industry Landscape Insights According to Eastbridge Consulting Group’s (Eastbridge) Large Case Market Report, the percentage of companies offering legal Insurance ranges from 38% - 44%, with the highest rate found in cases with 10,000 or more employees. Eastbridge’s report also shows legal insurance as one of the most commonly offered nontraditional voluntary benefits.

36-44%

Demographic Dynamics in Decision-Making Age and Life Stage Dynamics Age plays a significant role in the decision to purchase legal plans. Younger individuals, particularly those in their late teens to early thirties, often prioritize basic legal needs, such as rental agreements, employment contracts, or small claims issues. As people age and enter different life stages, such as marriage, home ownership, or starting a family, their legal needs become more complex. Consequently, they may seek legal plans that offer more comprehensive coverage to address their evolving legal needs.

Income Levels and Socioeconomic Status Income levels and socioeconomic status strongly influence the decision to purchase legal plans. Higherincome individuals and families may opt for legal plans as a proactive approach to protect their wealth and assets. In contrast, middle and lower-income groups may prioritize legal plans to mitigate the financial burden associated with unexpected legal challenges.

Offering flexible pricing options and payment plans can attract a broader range of customers.

the percentage of companies offering legal Insurance (Eastbridge)

Marital Status and Family Composition Marital status and family composition also impacts the decision to purchase legal plans. Married couples and parents often have more comprehensive legal needs, including estate planning, child custody, and divorce proceedings. Therefore, legal plans that address family-related legal concerns may be particularly appealing to this demographic

Ethnicity and Cultural Influences Ethnicity and cultural factors can also influence purchasing decisions regarding legal plans. Different cultural backgrounds may prioritize certain legal aspects, such as immigration issues, family law matters, or civil rights. Tailoring legal plans to align with the unique legal concerns of specific ethnic or cultural group scan be effective.

Geographic Location Geographic location can influence the decision to purchase legal plans due to varying legal regulations.

In regions with complex legal systems or a higher frequency of legal disputes, individuals may be more inclined to invest in legal plans to ensure they have accessible legal support when needed.

In Conclusion Understanding the demographic buying patterns of legal plans is crucial when designing customized plans that meet the diverse needs of each client’s unique demographical makeup. By considering factors such as age, income levels, occupation, marital status, geographic location, educational background, and cultural influences, communication and educational support can be customized to ensure employees understand the benefits based on their particular needs.

Educational Background and Awareness Education and awareness about legal matters significantly impact the likelihood of purchasing legal plans. Individuals with a higher level of education may have a better understanding of legal complexities and the potential benefits of having legal coverage. Educating employees about the advantages of legal plans can be a key strategy in increasing overall plan participation.

John Allen is President of EOI where he executes and develops strategic marketing initiatives on a national level, specifically focusing on the enhancement of value-added services that EOI provides for its clients. Since joining EOI in 2009, John has played a key role in the area of strategic marketing, building an outstanding implementation team in the Chicago office and tripling sales in the Midwest region.

The Impact of Voluntary Benefits

By Michael Naumann, Voluntary Benefits, West RPL, Reliance Matrix The series, “Voices of Voluntary Benefits,” shares insights from VB leaders throughout the country and will help us learn from one another and grow in our own practices as we educate employers and employees alike on the meaningful benefits we provide.

For many, this business is personal. Whether our own illness, that of a loved one, or the untimely death of a family member, most of us have experienced the powerful impact voluntary benefits have during a crisis. There is this heartbreaking reality that life can be unfair and those of us in the VB industry have wholeheartedly dedicated ourselves to easing financial burdens and providing peace of mind in times of need. Rather than focusing on a specific product for this issue, I am interviewing VB leaders from across the industry, prompting them with this statement, “I was forever changed by _____ and that’s why _____ …”

I was forever changed by breast cancer, and that's why I believe in critical illness insurance.

As a new mother, the joy of starting a family is one of the most cherished moments in life. Unfortunately, life doesn't always go as planned, and sometimes we are dealt with unexpected challenges. My own experience with breast cancer as a new mother was difficult. It not only impacted my health, but the bilateral mastectomy required, left me unable to be alone with my child during recovery — a heartbreaking reality.

That's why I believe critical illness insurance is vital. It provides a safety net for families during challenging times, allowing them to focus on healing, both mentally and physically, without worrying about the financial burden. My own experience has made me realize how crucial it is to be prepared for the unexpected. Critical illness insurance may be something you never want to use, but as someone who has gone through breast cancer as a new mother and understands the challenges that come with it, the peace of mind it provides is invaluable.

Jen Daker - Principal Voluntary Benefits |Arizona, Nevada, So. California, Utah, Mercer

I was forever changed by my own voluntary benefits experience, and that’s why I feel so passionately about the value of these plans and the claims filing experience.

A few years ago, I had back-to-back supplemental health claims myself. I was able to become a first-hand user of the hospital indemnity benefit with the birth of my first son. A few weeks later, on the last day of my maternity leave, I tripped, fell, and broke two fingers. On what should have been my first day back at work, I was having surgery. One of my go-to lines for Accident Insurance has always been, “you can use the benefit however you see fit, even if that’s using the money to order a pizza because you can’t cook with a broken arm.” Well swap out an arm for two fingers and a newborn and let me tell you, I felt that line to my core.

With these experiences, I had a direct line of sight into the claims filing process. In general, filing claims usually comes with some type of hardship. Many are in a far worse position than I was as a sleep-deprived, new mom with very limited function of one hand. While my claim filing experience wasn’t difficult, it also wasn’t necessarily the easiest. It has certainly become a motivator to thoroughly understand the nuances of each carrier’s claim filing process and the efficiencies many are now able to bring with integration. At the end of the day, these benefits are meant to alleviate stress, and I think as a community the industry has been making strides to ensure these products do just that.

Leah Govedarica, Director, VB Strategy & Development, Alliant Insurance Services

I was forever changed by Thanksgiving weekend of 2002.

I, like many college students, was wrapping up my studies to enjoy the holiday with loved ones. Insomnia had been a constant struggle in my life, and I often relied on my prescribed medication, to help me sleep. The next morning, I awoke to an unfamiliar scene. There was chatter and flashing lights around me, and the wailing sirens only added to the confusion before I drifted back into unconsciousness. When I came to again, there was a series of loud bangs followed by intense pain. My first bewildered thought was, "What's happening?" Slowly, I opened my eyes to find a flurry of doctors and nurses attending to me. It was evident I had been in a terrible car accident.

I had sleepwalked under the influence of my medication, gotten behind the wheel, and subsequently crashed my car, my head breaking through the window of my 1989 Honda Accord. Amidst the whirlwind of emotions and thoughts that raced through my mind, the most troubling was the looming question of how I would manage to pay the mounting medical bills. A few days later, I received a call from my mother, who believed she had an insurance policy that might be of help. Years earlier, she had purchased an accident policy, though uncertain about the details, she thought it was worth a shot to submit a claim. A couple of weeks later, she handed me a check. The immediate relief it provided was nothing short of astonishing. It eased my worries about rent, utilities, food, and gas for my commute to physical therapy. Intrigued by this unexpected lifeline, I delved deeper to understand how it worked, leaving me wondering why more people weren't aware of such options.

And that’s why I became a per diem enroller. Appointed with various carriers, I began selling worksite benefits. My passion for supplemental benefits grew from my personal experiences. My "Why" is to ensure that both employers and employees have a clear understanding of affordable plans that could provide crucial support during unexpected challenges. I am driven to help everyday workers mitigate the financial risks associated with unforeseen hardships. My purpose is to protect those who often go unprotected, so that even in the face of life-altering events, they can have financial peace of mind and focus on their path to recovery.

Shawn Ferguson - National Senior Vice President, Director of Voluntary Benefits & Product Development, Acrisure

I was forever changed when my father passed away from cancer, and his cancer policy helped my mother out of financial debt, and that’s why I am so passionate about voluntary benefits.

I don’t tell this very personal story often as it was some of the darkest times in my life, but it lead me to a career that now drives my personal mission to help others in the same way. In 2004, my father was diagnosed with multiple myeloma. It was a devastating diagnosis for someone as young as he was. My father went through radiation, chemo and even underwent a bone marrow transplant. The cost of his drugs, second opinion and care were a large burden for a blue-collar family. Even though expenses continued to mount, my mom and dad scraped by to get him the best care possible. My father fought hard, but the cancer ultimately took his life in 2009, and along with the deep loss, my mother was also left with mountains of bills and debt.

Upon some investigating, I came to find out that my dad had a traditional cancer plan, which he had enrolled in with his employer. The plan was paid up-to-date, and my mother and I quickly got to work pulling all of the necessary paperwork together to file a claim. The claim was filed and within a week, a check was received for a substantial amount of tax-free money. This benefit came at a time when my mother needed it most. Filing the claim took little effort, zero hassle from the insurance company and the payment came with lightning speed.

While I had just started in the insurance industry, this experience made me a believer in voluntary benefits and the value they hold for so many people just like my parents. Today I exclusively work in the voluntary benefits industry and continue to help educate employers and employees on the value these programs offer to them and their families.

Krystie Dascoli, CVBS, Practice Leader Marsh McLennan Agency

I was forever changed by an experience during my career that I will always remember. I was working for a carrier and had sold our products to the employees of one of the insurance agencies we partnered with.

One of the employee benefits brokers (who for the record, had never sold a group with me) requested a meeting to talk about the options. We met for coffee where he proceeded to tell me that he doesn’t believe in voluntary benefits and so it was up to me to sell him on why he should signup. I explained that everyone’s needs are different, and asked him a few brief questions about his life (dependents, financial goals, etc.), before making some recommendations for him. That day, he enrolled in the “high” accident plan because he had a young daughter at home and she was “always jumping off stuff” and it was “cheap”.

Fast forward to a few months later, I had actually made the transition to working on the brokerage side, but my husband still worked for that same carrier. He received a call from the agency that the broker I had met for coffee had passed away over the weekend in a dirt bike accident. The $60,000 AD&D benefit on that Accident plan was the only life insurance benefit he had for his stay-at-home wife and young child.

And that’s why, to this day, I am meticulous about the benefits on the proposals we accept and why we require an AD&D benefit on all Accident plans. I think about that young woman and her daughter and how much the benefits from the accident plan their husband/father purchased after one of the hardest sells of my career, and I never want to let anyone fall through the cracks.

Heather Garbers - Senior Vice President Voluntary Benefits, HUB International

I was forever changed by a carrier's Critical Illness exclusion for bladder cancer.

This carrier had a fine print exclusion for a definition of Non-Invasive Cancer that read "Non-Invasive Cancer includes 1. intraductal non-invasive carcinoma of the breasts, carcinoma of the appendix, and stage 1 transitional carcinoma of the urinary bladder. They denied an employee's bladder cancer claim and I will never forget listening to this employee over the phone tell me how devastated he was that he purchased this plan and couldn't believe his cancer claim was denied. He told me if only he had waited to have all of his treatment until his bladder cancer was a stage 2, he would have been better off. It was terrible.

To this day, that’s why I read every single exclusion first in contracts instead of what IS covered.

Allysa O’Donnell - Senior Advisor, Supplemental Insurance Professionals

I was forever changed by two pivotal seminal events.

First, my dad invited “the insurance guy” over to our house the summer I graduated from college and mandated that I purchase a $25,000 whole life insurance policy. His words stuck - “you’ll never be younger and more healthy than today, and that’s why today is the perfect day to buy this”.

The second event was his sudden passing from mesothelioma cancer seven short months later after a blistering 30 day start to finish battle. His own personal life insurance policy saved my mom, with four young kids at that time, from losing her home and put three of us through college (she was disabled and could not work).

And that’s why, I champion and put a spotlight on voluntary benefits, small but mighty policies … that is what could make the biggest difference in someone’s life and my calling and vocation is to be certain that humans in my care understand the potential impact whether they enroll or waive in additional voluntary insurance options.

Kerry Connor - National Voluntary Benefits Practice Leader EPIC Insurance Brokers & Consultants

I was forever changed by COVID and that’s why I stopped treating Hospital Indemnity Insurance as an after thought...

Not exactly original to say I was forever changed by COVID, right? But in those early days, as we watched healthcare facilities brimming with patients, I couldn’t help thinking about the families who were now faced with unexpected – maybe even unprecedented – medical expenses. And I wondered, had I shortchanged them? I had been in our business for 18 years at that point and if I’m being honest, I had probably been a bit dismissive of Hospital Indemnity plans. Accident and Critical Illness – that dynamic duo was second nature to me, but Hospital Indemnity was a can I continually kicked down the road. Something to look at in Year 2 or 3 of an enrollment strategy. I carried a bit of guilt about my mindset for quite a while. And so, as it did with so many other aspects of life, COVID forced me to think differently. Today when I’m presenting a client with a voluntary benefits strategy, you can usually expect to see a Hospital Indemnity solution in the mix, riding sidecar with Accident and Critical Illness.

Katie Ott – Partner, Director of Voluntary Benefits, M3

After passing my 20th year in the employee benefits industry this summer, I was forever changed by a more recent event that strengthens my belief in voluntary benefits. Close friends of my wife and I had a recent cancer scare after being diagnosed with a cancerous mass in the wife’s left side of the face. The couple had purchased a critical illness plan five years prior after a previous benign diagnosis that had certainly caused fear for potential high medical expenses.

My wife and I invited the couple to join us for a weeks’ vacation in Hawaii knowing this would be a welcomed relaxation period prior to her treatments. After we were turned down numerous times with costs being a hindrance and the upcoming wedding of their second oldest daughter five months later, they received a check for $20,000 from their VB carrier.

Soon after they joined us for the vacation, the wife began her 12 month treatment plan with the strength and energy we all knew she had. After receiving a clean bill of health two months after treatment, we were told numerous times by her family how much the vacation helped her prepare for her battle. And that’s why I continue to communicate and educate that voluntary benefits claim dollars can be used for anything expense and not just medical expenses.

John Hickey, GBDS, VBS - Senior Vice President, Assured Partners

Everyone has their own individual journey and here is my why. To show you how impactful voluntary/supplemental benefits can be, I’d like to share my personal story as I was forever changed when my 10-year-old retired Greyhound Lui needed emergency surgery to remove a cancerous mass. In that moment, I had to make a split decision whether to proceed with a $20,000 surgery or not. Like many, our pets are our family. I decided to move forward with the surgery, but in that moment, I was concerned about cost on top of Lui’s health. No matter who you are, this kind of situation has an impact on an individual’s physical, mental and financial wellbeing. Since then, I’ve had to say so long for now to Lui, but I was grateful for the additional time that having pet insurance made possible.

Offering a portfolio of voluntary benefits can improve an employer’s total rewards strategies and support an employee’s whole-person wellbeing by empowering them to make decisions about care when an unexpected medical event strikes. I find many employees don’t fully understand their benefits choices and aren’t fully aware of the value of what their employers are offering. That’s perhaps a key reason why pet insurance continues to have lower than expected participation. Beyond the stress of caring for an injured or sick pet, the cost of care can be a significant financial burden and that’s why I am an advocate for offering pet insurance and ensuring employees understand how this protection works with a thoughtful employee engagement and education strategy.

Tina Santelli CBC, GBDS - Vice President, National Voluntary Benefits & Enrollment Solutions, Alera Group

Market Predictions With Winston Benefits

By Jennifer Daniel, National Vice President Broker Distribution Strategy and Partnerships Aflac

Technology has made a huge impact on our business over time and will continue to do so, maybe even at a faster rate in the future. There are also many different ways to use and access technology in employee benefits. For this month, I am interviewing Colin Bradley, President & CEO of Winston Benefits to get his take on the industry.

Jennifer: There has been a lot of discussion in recent years about benefits for those working in the Gig Economy, how do you think the benefits administration marketplace is evolving or changing to address the opportunities in that space?

Colin: I think a lot of employers, particularly in the small market, are really struggling with how to effectively deliver benefits. And as people have become more comfortable with giving their credit card and banking information, these benefit administration tools aimed specifically at that marketplace can become a successful venue for people to buy benefits.

My only challenge is that insurance carriers, like people who have a consistent paycheck, like people who have consistent employment and want to be able to know that the premiums they charge for those benefits are affordable to the end users and then become valuable and useful to that consumer. My concern is that all these efforts to find solutions for the gig person ultimately are not affordable from a pocketbook perspective because their employment is variable.

Jennifer: So, do you think then that carriers and brokers could solve for that by going to a marketplace model, where employers give employees a set amount of money and they choose what works for them?

Colin: Yes, I think the marketplace model combined with a defined contribution strategy could ultimately prove to be the best, or at least a better, solution for Gig Workers. Again, I go back to the concern around general levels of affordability. . A marketplace approach, or dare I say “exchange”, could be a place where Carriers, Employers and Gig Workers find the necessary balance between cost effective and useful benefits for workers, financial certainty for the companies and a large enough audience to make the underwriting work for the insurance carriers. The risk you run with this type of solution is that it take too much time and money to generate critical mass and therefore won’t be pursued.

Some amount of collaboration is going to be required by the carriers and technology vendors looking at this space to make it work.

Jennifer: Help our readers better understand your model at Winston Benefits and why it works so well for your clients.

Colin: From day one our philosophy has been to deliver benefits to people in the format they feel most comfortable. As a result, I always refer to our company as a technology enabled service business focused on the employee experience and the consumer choice process. This requires deliver benefits through technology and through people simultaneously.

It’s important to remember that not all consumers are comfortable with making expensive decisions without some element of human interaction. We think the ideal solution for our customers and their employees is a high touch support partnered with a great technology to drive the best outcome. That means a robust call center offering, onsite enrollment if a customer needs it and easy to use self service technologies to give support 24/7/365.

Jennifer: Let’s switch gears to another hot topic: claims nudging or claims adjudication. Ultimately what we're trying to do is to get people to use their benefits and to file claims, are you seeing any trends in that space?

Colin: My perspective on the claims adjudication piece is that 10 years from now, it'll not be table stakes.

Everyone, every carrier of meaningful repute, will make it part of their base offering.

That's just a function of healthcare costs or increasing at rates double that of inflation on a consistent basis, which means, 10 years from now, health plans are going to cost $50,000 for a family of four. That's just inconceivable. People will then, by default and for financial reasons, move into higher risk products like high deductible health care plans and they're then going to want to protect themselves against catastrophic risk. This will lead to them buying more voluntary benefits that slide that umbrella coverage around those events to make the consumer experience seamless. The industry is going to have to invest in making the claims process easier as more people buy those products.

Jennifer: Okay, we are talking about investments, let’s shift to the tech fee conversation. As you know, coming from the carrier space, we're being asked to pay subsidies and GA overrides to pay for decision support tools and any other bells and whistles that clients or brokers want to add. There is only so much money to go around, where do you think the priority should be?

Colin: A very hot topic for sure. If you look at some of the characters that are new in the voluntary benefits space, they've set aside marketing dollars to essentially buy their way into the market.

So, when we talk about these added fees, it's cramming down all the dollars set aside for something else. It's not creating new dollars unless you want to raise the price, it's just cramming down the dollars elsewhere. So, there is a very honest conversation that just needs to happen with people where the carriers need to be forthright about actual expenses and the brokers need to be realistic. And, right now the voluntary benefit products still have lower loss ratios relative to medical plans so everyone feels like there's always money to go around. But I am convinced that 10 years from now it's going to look dramatically different.

Jennifer: Okay, one last question and it's the biggest buzzword out there right now which is, what's your prediction on the impact that AI will have on the insurance business?

Colin: I generally am a very hopeful person around AI. I think AI is going to add a very valuable tool to the workforce to help us do our jobs better, faster and more efficiently. I would think that the people who should be investing in AI the most are the insurance carriers. They have all the data. They have all the information on these older systems that are legacy applications that they are not going to get rid of and I think they have the best opportunity to create business process improvements using AI. I don't have a crystal ball and don't want to make predictions on how AI is going to affect the consumer in the insurance space. But, I think that inside the operations of our businesses are going to be where AI makes its presence known first. The minute you turn these tools around and make them a business to consumer experience, the level of concern and security increases and it’s a lot more unlikely.

Unfortunately, the carriers who have been traditionally in that marketplace who have the experience and the data that can point to what these products should cost are at the mercy of the next carrier up saying, “Yep, we'll lower the rates 20% and pay for this and pay for this.” The brokers then have a responsibility on some level to try to bring the lowest cost to the client.

Colin Bradley, President & CEO of Winston Benefits - which provides an array of employee benefit communication, enrollment and outsourced administration using best in class, proprietary technology tools

Caring For Your Employee Caregivers

By: Gretchen Barry, BuddyIns

November is Long-Term Care Awareness Month, a time to raise awareness about the need for planning for a long-term care event and the options available.

Whether employees are caring for an adult loved one or they need care themselves, either event can impact their futures and the company’s bottom line.

Long-term care refers to the personal and medical assistance that people may need when they are unable to perform basic daily activities, such as bathing, dressing, eating, or moving around. Longterm care can be provided at home, in a community setting, or in a facility. This article will not cover the different types of funding solutions for long-term care as there are many. What I want to cover is the impact of care on individual employees.

According to a 2020 report by AARP and the National Alliance for Caregiving, there are about 53 million family caregivers in the U.S., and most of them are also working.

Long-term care is not only a personal issue, but also a workplace issue. Our national caregiving crisis greatly impacts companies directly as employers report key employees coming into the office late and leaving early to care for loved ones at home or in a facility.

Productivity decreases as these employees effectively have another job to do.

If one were to quantify the amount spent on unpaid caregiving it would total $500 billion dollars annually, or more than the annual GDP of 90% of the countries in the world (America is Running Out of Family Caregivers Just When It Needs Them Most, WSJ.com, 2018).

Employers and benefit brokers should be aware of how caregiving impacts employees and what they can do to support them. Here are some key points to consider: Caregiving impacts employees' health, productivity, and finances. Caregiving can take a toll on their physical and mental health, as well as their ability to balance work and family responsibilities. Caregivers may experience stress, burnout, depression, anxiety, sleep problems, chronic diseases, and lower immune function. They may also face reduced work hours, lower income, higher expenses, and lower retirement savings.

A family member's long-term care event can have a significant impact on an employee's career and well-being. It’s important to remember that it can happen to anyone, at any age, due to an accident, illness, or sudden disability. A long-term care event can affect an employee's availability, performance, and satisfaction at work. It can also affect their relationships with their family, friends, and coworkers. Employees may have to take time off work, reduce their hours, change their schedules, relocate, or quit their jobs to care for their loved ones.

Planning for their own long term care is important for employees' future security and peace of mind.

According to the U.S. Department of Health and Human Services, about 70% of people turning 65 today will need some type of long term care in their lifetime.

Long-term care costs continue to rise for several reasons, including: Higher demand: As the population ages, more people will need long-term care services, especially home-based care, which is preferred by most seniors. The Covid-19 pandemic also increased the demand for home health aides and other caregivers who can provide care in a safer environment.

Higher labor and supplies costs: The cost of providing long-term care services is influenced by the wages and benefits of the workers, the cost of supplies and equipment, the regulatory requirements, and the market competition. Longterm care providers continue to face challenges in recruiting and retaining qualified staff, especially during the pandemic, which drives up labor costs.

The cost of supplies and equipment may also rise due to inflation or shortages.

Longer lifespans: People are living longer than ever before, thanks to advances in medicine and public health. However, this also means that they may need long-term care services for longer periods of time, increasing the total cost of care over their lifetime and a greater burden on caregivers.

The rising cost of long-term care poses a significant financial challenge for many families who may have to pay out of pocket or rely on public assistance programs such as Medicaid. But that’s not the only issue. Those who have loved ones receiving skilled care are still burdened with monitoring care and managing care coordination.

There is hope with a new wave of Long Term Care Insurance and Caregiving Solutions There has been a dramatic recent increase in long term care focused insurance solutions in the marketplace. As recently as summer of 2023, there were only a few products designed with guaranteed or simplified health underwriting for the worksite filed as true 7702B LTCi. By the end of 2023, we expect there to be at least a dozen LTC focused insurance products.

Most of this new wave of products are hybrids in that they are built on permanent life insurance where there is a significant LTCi component, which often time extends the duration of the LTC coverage beyond the original death benefit.

These products are easy to access, affordable, and a starter plan to provide a modest amount of built in funding toward the cost of care. As important as the funding, it provides the caregivers a roadmap to get some help with professional care instead of taking the entire burden on themselves.

We are also seeing a wide variety of resources and technology solutions for family caregivers being offered in the workplace as employer paid or voluntary benefits.

Amy’s Story A young, professional woman, Amy has been impacted by her new role as a caregiver for her mother who is currently in a memory care facility.

Amy had always been close to her mother, but when her mother was diagnosed with Alzheimer's disease, their relationship changed. Amy had to make the difficult decision to move her mother to a memory care facility where she could receive the care and supervision she needed. But that didn't mean Amy's responsibilities were over. She visited her mother several times a week, made sure she was comfortable and happy, and dealt with the medical and financial issues that arose. Amy often felt overwhelmed and guilty, wondering if she was doing enough for her mother, or if she was making the right decisions. On top of that, Amy had her own career and family to consider and had to put her master’s degree on hold because of the need to free up time to manage her mother’s care.

As you can see from Amy’s story, the responsibility does not end once the care is turned over to professionals. Amy is considering her own long-term care plan and working with her employer on a more flexible schedule, and utilizing the EAP resources that are available to her.

Expanding the Discussion Around Long-Term Care Planning Employers and benefit brokers can play a vital role in educating employees about the importance of long term care planning and the benefits of long term care insurance.

Flexible schedules and employee assistance programs can also improve an employee’s experience. Providing access to affordable and quality long term care insurance plans through group or individual policies will become a more sought after benefit. By doing so, companies can help broaden the conversation about planning and help more employees prepare for their own future needs and enhance their loyalty and retention.

Yes, November is National Long-Term Care Awareness Month, but planning for long term care is a year-round endeavor. Take this opportunity to start or continue the conversation with employees about this important topic.

Gretchen Barry - is Chief Marketing Officer for BuddyIns, a technology, education, sales, and marketing company specializing in long-term care planning. With over 20 years of marketing leadership experience, Gretchen has built an extensive marketing portfolio.

Gretchen works closely with the BuddyIns team and partners to identify ways to advance the company's brand, partnerships, and mission. With first-hand experience as a caregiver, Gretchen understands the inherent challenges and unlimited opportunities facing the company and the LTCi industry. Gretchen can be reached at gretchen@buddyins.com.

What Business Are We Really In?

By Steve Clabaugh, CLU, ChFC November - it’s right in the middle of open enrollment season. That time of year when our schedules can go quickly from busy to totally crazy. For many of us, our compensation is directly affected by participation percentages and the resulting premiums. And for many of our companies, (both carriers and brokers) profitability for the year is on the line.

But November is also the month when we set aside a special time to give thanks for our country, our families, our fellow citizens and our heritage as Americans. Did you know that the United States is one of only 7 countries in the world that designate a holiday, at any time, for giving thanks?

So, as we scramble to handle both the usual and the unexpected challenges of open enrollment on our way to the Thanksgiving holiday, I’d like to take a few minutes to remind us of what our business is really all about. And it’s not just participation, premiums, commissions and qualifying for awards and trips.

It’s about offering some security in a very unsecure world.

It’s about helping people understand the great risks in human existence (living too long, dying too soon, contracting a critical illness, becoming disabled, etc.).

It’s about being there when the unthinkable becomes the actual.

It’s about helping real people deal with real problems.

When I first started in the life insurance industry, the more experienced agents used to say that “until you have paid a claim, you aren’t really in the business.” I learned this to be the truth in a very practical and humbling way.

Early in my career, I was asked to deliver a claim check to the widow of a long-time client whose agent was no longer with the company. I called, introduced myself, and made an appointment to meet with her and her son to deliver the check. Following the directions her son gave me (directions and maps were what we used pre-GPS in 1988), I arrived at a small frame house in an older but well cared for neighborhood at the appointed time.

I was very nervous as I knocked on the door, but she was such a kind and gracious lady that she quickly put me at ease. She introduced me to her son and while we drank coffee, she shared stories about her late husband and their life together.

She turned back around and took my hand in both of hers.

She looked up at me with tears in her eyes and explained that the check was just the right amount.

He was a carpenter and had built much of their home himself. It may have been a little house, but it was filled with wonderful memories of their years together. Her husband had purchased the life insurance policy many years ago to make sure she would be taken care of in case of his death.

Now it was time for me to fulfill the promise made by the insurance carrier. As she talked, I kept thinking about the check I was about to present to her. The check was for $25,000, which wasn’t a lot of money even in 1988. How in the world would such a small check take care of her?

It was then that I made one of the worst presentations of my entire life and career, before or since. As I handed her the check, I mumbled something like: “On behalf of our company it is my privilege to present you with this check.” Nothing special or embarrassing so far. But then I finished by saying, “I’m sorry it isn’t more.”

Ouch!

Before the words even finished leaving my mouth, I realized what an insensitive, insulting and downright stupid statement to make. That policy was probably what their budget afforded at the time of purchase.

So here I was, in effect, criticizing them for doing the best they could. Surely this was the worst claim presentation ever and no doubt she and her son would be deeply offended.

I will never forget her response.

Instead of being angry and insulted, she walked across the room, received the check from me and handed it to her son. Then she turned back around and took my hand in both of hers. She looked up at me with tears in her eyes and explained that the check was just the right amount. It meant that she could stay in the home they had built together. Because of that check, she would not have to move in with her son and his family. The check was a final message of his love and care for her.

I have never forgotten the life lesson she taught me.

Over the years I have participated in many other opportunities to fulfill the promise our carriers make. I have shared many of those experiences with agents, brokers and home office associates. As CEO of a life insurance company, I used to share claims stories every year at our annual awards trip for top agents.

But here, 35 years later, I still remember that particular experience like it had happened yesterday.

As we hustle through this high-pressure busy season and on to the year’s end. I hope you will join me in thanking those that develop new products; actuaries that analyze and price them; compliance associates who make sure provisions are legal and appropriate; underwriters who evaluate and approve the risks; marketing teams that prepare materials to tell the story; field officers who recruit and support those who sell; the agents and brokers who represent the products; home office associates who process and issue the products; accountants who apply premiums; customer service representatives who answer client’s questions; claims teams who help clients by fulfilling the carrier’s promises and – well, you get the picture.

This column each month is focused on what we call Relational Leadership. I can’t think of any better example of how the relationships between all of us in this vital industry work together to meet the real needs of real people.

Thank you for the outstanding way you do your part. And Happy Thanksgiving to all.

RELATIONAL LEADERSHIP EXPERIENCE Can it Help Your Employer Clients?

Your employer clients are facing new and different challenges in today’s business environment including: Remote Work - Returning to Office Diversity - Equity - Inclusion Geopolitical Uncertainty - Cultural Conflicts The timeless principles of Relational Leadership can help your employer clients navigate these issues as they grow and prosper their business.

Relational Leadership Experience helps your clients: Create and build high-performance teams Select and train the right employees Implement effective mentoring Develop positive conflict management Determine and implement the best outcomes Achieve ongoing growth and success In-person, online and combination programs available to meet the needs of your employer clients.

To learn more about Relational Leadership Experience Contact: Steve Clabaugh, CLU, ChFC at sjcsr@hotmail.com or 910-977-5934

Steve Clabaugh, CLU, ChFC - started his career in insurance as a Field Agent, moving on to Sales Manager, General Manager, Regional Manager, Vice President, Senior Vice President, and President/CEO. A long time student of professional leadership, Steve created the Relational Leadership program that has been used to train home office, field sales associates, mid-level managers, and senior vice presidents.

Copyright 2023 by Voluntary Advantage, LLC. All rights reserved. No part of this magazine may be reproduced in any form without consent.

The Voluntary Benefits Voice is published monthly in digital format only by Voluntary Advantage, LLC. Subscriptions are available at no cost by subscribing at www.voluntary-advantage.com.