Voluntary Insurance: Big Benefits in a Tough Economy
Mar 9, 2010
With slashed payrolls and national unemployment still reaching above nine percent, Americans are understandably anxious about protecting their families and finances. They know that even if they miss work, bills will continue to come in the mail and mouths need to continue to be fed. Employers admirably do what they can to ease anxiety by encouraging employees to focus on productivity and by providing options to help them be financially prepared if there is an unexpected accident or illness.
As economic uncertainty abounds, one thing can be sure: in order for Americans to protect their families and finances ― adequate insurance coverage is a must-have. For agents and brokers, this means your customers need you.
As Americans go searching for answers, perhaps the best role insurance agents and brokers can play is that of financial educator. Even in good times, we act as a valuable resource for benefits decision-makers and employees in search of guidance. Over the last year and into 2010, it has become even more important for brokers and agents to step into the educator role to illustrate how integral adequate insurance coverage is in smart financial planning practices.
As teachers, you have the information, tools, knowledge and products necessary to help ease the fears of employers and employees alike.
Consumers and employers share the goal of being financially secure. Consumers are particularly concerned about safeguarding their income against unexpected health events. Meanwhile, employers want to safeguard their businesses by retaining top industry talent and clients. These needs ― and others ― can be met by adding voluntary benefits to your product portfolio.
As insurance experts, it is your responsibility to educate employers and employees about the benefits of all types of insurance – including voluntary, which addresses a variety of concerns and provides highly sought-after peace of mind. Simply put, voluntary benefits helps people protect their businesses, finances and loved ones. Agents and brokers have an incredible opportunity to collaborate and ensure that voluntary insurance policies are included in their portfolios to help alleviate some of this overwhelming anxiety. Not only can voluntary insurance products help brokers diversify product offerings and generate new revenue sources, it can also provide a great service to your clients by addressing specific financial needs during a time when employees and employers need it most.
Here are some tips that can help brokers select the right company for voluntary insurance:
Focus on Reputation
If you look up synonyms for the word "trust," a number of words may populate your computer screen, including confidence, reliance, responsibility, dependence and protection. Present voluntary products from a company that embodies these values because it will build confidence among potential policyholders and help to protect their families’ finances when they need it most. Also, it will help to strengthen your clients’ trust in your products and services. A voluntary insurance provider that has a solid foundation and whose sales, customer service and reputation defy the current economic situation is an added value for any broker.
Offer Policies That Provide Income Replacement
According to a Harvard study of bankruptcy filings in 2007, 62 percent of U.S. bankruptcies were due to medical expenses, and 78 percent of those who filed for bankruptcy had health insurance. Astonishing, isn't it? As businesses seek out ways of providing enhanced benefits packages for their employees without breaking the bank, voluntary insurance plans become very attractive ― available at no cost to the employer.
Voluntary coverage can help protect an employee's family and finances in the event of a disabling illness or injury in unique ways because benefits can be used toward routine living expenses, such as house payments, car payments, rent, groceries, utility bills, etc.
Voluntary insurance, like hospital confinement indemnity, accident and short-term disability policies, can be valuable financial planning tools for employees who have inadequate savings but still want to protect their families' incomes against unexpected health events. These plans can help relieve some of the financial stress that being out of work due to an injury or illness can cause. Providing voluntary coverage is also an attractive benefit that employers can use to retain their most valuable people from looking elsewhere as the job market begins to show signs of improvement.
Value Strong Infrastructure
Look for a voluntary insurance provider that has the infrastructure in place to support ongoing, quality service to your clients ― and you. Strengthen your client relationships by working with a company that has the right organizational structure, one that includes top-notch value added services, enrollment solutions that integrate seamlessly with your systems and a dedicated team responsible for managing customer service. A company with systems that make your life easier as an agent or broker is a company you want to work with ― the more satisfied you are, the more satisfied your customer will be.
It is no mystery why workers and business owners are constantly evaluating their finances during this challenging economic time. Brokers and agents have a unique opportunity to help provide the peace of mind that both are looking for. You have the opportunity to educate your customers and counsel them about how to protect their incomes and assets, help protect their families and help them feel more secure in a tough environment.
Michael Naumann, Market Vice President of Broker and Market Development at Aflac, is responsible for developing and implementing sales strategies to support Aflac’s field force in acquiring new accounts through relationships developed with national brokers, achieving targeted sales volume, maximizing market potential, and helping design and implement marketing and sales strategies for Aflac products. Visit aflacforbrokers.com or call 1-888-861-0251.
