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What are the trends in Voluntary?
How does Voluntary fit in with other products?
What is the difference between selling Voluntary and traditional
group products?
What is the potential of Voluntary?
Who is buying Voluntary?
What challenges do employers face in meeting employee benefit
needs?
What are the rewards of selling Voluntary?
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Since 1997, Voluntary sales have grown 120 percent to exceed $4.3 billion in 2003.2 It’s one of the fastest-growing segments in the employee benefit industry.
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Group products grew 17 percent in 2003 compared with six percent in individual.3 |
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Between 1997 and 2003 health premiums went up 68.5%. 4 |
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The hierarchical approach to the spectrum of benefits and funding is:
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Employer-Paid or Partially paid: Medical insurance and traditional ancillary employer-paid products such as life, disability and dental, |
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Traditional Voluntary: When unable to fully fund ancillary insurance benefits, employers can provide employees access to quality benefits without incurring more costs by offering traditional Voluntary products sold at the worksite. Premiums are paid via payroll deductions, the group bill goes to the employer and the plans are underwritten at the group level. Coverage is typically provided with some level of guaranteed issue. |
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Worksite: To fill in gaps, an employer can provide employees with direct access to traditional worksite products—including Universal Life, Cancer and Critical Illness. These individual products are offered at the worksite and are individually underwritten. Employees often pay the premiums directly to the carrier. |
When selling traditional group products, the broker has a single audience. To sell Voluntary, the broker is involved in a two-step sales
process:
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Get employer endorsement |
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Get employee buy-in |
To ensure a successful experience for everyone, brokers must be aware
of several important nuances, including:
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A tested marketing plan with a timeline helps the employer understand what is involved and reduces the time it takes to educate the employer and employees about their options. |
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Using customized enrollment material clearly shows each employee exactly what he/she is eligible for and at what cost. |
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Utilizing the expertise of the carrier's sales and enrollment specialists helps to quickly educate and explain options to the employer and employees. |
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Voluntary can help you attract new customers, better meet the needs of existing customers and help sustain your business. Your commissions can only grow. For instance, if you sold five Voluntary dental cases with 50 percent participation and 100 covered lives, you could expect to earn $12,000 in first-year commissions.5
Use this compensation modeling tool to find your earning potential.
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Think Voluntary is only for blue-collar industries or only popular in certain parts of the country? Think again. Because employers across the country are facing intense pressures to reduce costs, Voluntary is a trend that no longer has a narrow focus.
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According to research conducted in 2004, 38 percent of people purchasing Voluntary earn in excess of $60,000 annually, with 14 percent earning $80,000 or more.6 |
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More than one-third have completed college or have gone on to earn a higher degree.7 |
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In the United States, 35 percent of all employed men and women own at least one Voluntary product.8 |
The Voluntary market is growing—if you’re not offering it, someone else is.
The biggest challenge employers face is group Medical costs increasing 10 percent to 21+ percent for 73 percent of all employers.9 They have less and less ability to cover the expense. Additionally, employers could risk losing the best employees to competitors if they choose to cut back on or eliminate high-cost benefits.
You can address these and other challenges by customizing a Voluntary program that allows the employer to:
- offer a full spectrum of benefits without additional costs;
- provide employees access to these benefits at group rating; and
- offer guaranteed issue amounts for timely applicants.
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Your clients need Voluntary because they often cannot afford the growing
costs of in-demand employee benefits. By offering Voluntary, you can
- be the hero;
- positively impact your clients’ bottom line;
- earn great commissions;
- use Voluntary as a door-opener to grow your group Medical business;
and
- defend your current group Medical business against your competition.
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