8 minute read
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 US 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.
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.
