Do your employees know what they need to about life insurance? People tend to overlook life insurance, because they think they’re too young to need it, or they don’t understand what it could be used for. September is Life Insurance Awareness Month, so now is a perfect time to educate your employees about life insurance and what it can do for them. Here are some trends that can help you offer the best life insurance policies to your employees.
Older Clients Want Security
Life insurance has always been about protecting people’s assets after a breadwinner dies, but the focus has changed due to people living longer and the rise of eldercare services. Older employees are now interested in products that can help them provide a windfall to make up for lost wages, or protect them from health care costs late in life.
LIMRA President Bob Kerzner in an interview referred to this change as moving from a philosophy of “protect my family in case I die early” several decades ago to “protect me financially in case I die late” today. Educating employees about the importance of life insurance as an asset protection product can help; in addition, finding policies that offer longevity riders or coverage for chronic illness can be useful.
Gen Xers Are Short on Life Insurance
Studies show this generation isn’t aware of the benefits life insurance can provide for people in their stage of life to protect the assets and income they have. According to MetLife, more than three-quarters of Gen Xers have life insurance, but there is often a sizeable gap between the coverage they carry and their financial needs. Tools such as calculators that show exactly how their current policies fall short can help, so work with your vendor to see what they might be able to offer.
Millennials Want New Models
Millennials are focused on pressing financial issues such as paying off student loans and preparing to buy houses or start a family. As such, this demographic is a good target for education about long-term planning about their next stage of life. One survey found that millennials understand the need for planning for long-term and end-of-life insurance, but like other generations, aren’t always ready to purchase options that can help. Look for ways to communicate with millennials effectively through social media, and ensure any qualification processes are short and simple.
Take a Digital Approach
Apps, platforms, portals and calculators are no longer fancy new tools to educate employees about their insurance options — they’re a necessity. Both insurance companies and their clients are interested in using technology to communicate about and manage life insurance products: A study from J.D. Powers found that 27 percent of life insurance customers communicated with life insurers via digital channels in 2016. Remarkably, a third of baby boomers have submitted life insurance applications online, compared to a quarter of millennials. Work with your vendors to provide the kinds of communication tools employees need when researching and applying for life insurance.
Winston Benefits is an HR solutions company that helps businesses enhance and optimize employee benefit plans, enrich compensation and rewards programs, and save money on benefits communication, enrollment and administration. Contact us to learn more.