Have You Volunteered For Coverage?

Voluntary benefits, sometimes referred to as Worksite benefits, have been around for many years.  They benefit the employer by enhancing the portfolio of benefits that it provides for employees.  They benefit the employee by providing an affordable portfolio of protection that would not otherwise be available.  Therefore, voluntary benefits provide a win-win from an employee/employer relationship perspective.

Examples of voluntary benefits include Critical Illness Insurance, Cancer Insurance (Sometimes combined with Critical Illness), Accident Insurance, Long-Term Care Insurance, Disability Income Protection, Life Insurance and more.  Sometimes, voluntary benefits are used to enhance existing coverage, especially when the existing (primary) coverage does not adequately indemnify an employee for the expense or loss.  Voluntary benefits are typically portable, thereby allowing a departing employee to continue coverage even after employment has terminated.

There are several alternatives for making voluntary benefits available to employees. One approach allows a sales representative from a specific insurance company access to individual employees on an ongoing basis.  In this approach, the employees make the decision to discuss the applicable benefits on an individual basis with an insurance company representative.  While these discussions frequently occur on company time, the company is not involved in any of the process.  Additionally, due to the competitive nature of the world that we live in, many times, the Human Resource Manager is hounded by these representatives for access to the employees. 

An alternative approach, and one that is reinforced by many successful organizations, involves a careful analysis of voluntary benefit offerings, based upon the specific needs and wants of the employee population and in coordination with the type of coverage already in place.  It involves a strategic meeting between the company management and the Benefits Specialist to determine what type of coverage is necessary and appropriate.  The Benefits Specialist has the capability of accessing many different products across many companies.  Additionally, in this approach, the company controls the conversation with its employees and enhances the overall portfolio of benefits provided to employees. This assists in recruiting, retaining and satisfying employees, while still providing freedom of choice for the employee.

Have you considered the power of voluntary benefits?

Do You Know When Your Next Service Appointment Should Be?

Your car requires regular service appointments and, at a minimum, an oil change, lube and filter change to insure that it operates reliably on a consistent basis.  You probably follow the recommended schedule with a fair amount of discipline, knowing that without your car, transportation alternatives become very limited and your lifestyle would change significantly.

When was the last time that you thought of servicing your portfolio of insurance protection?  Unlike an automobile, which we interact with on a daily basis, our insurance policies typically remain in a file, waiting for the day when we need to access them in hopes that we will be appropriately indemnified for a covered loss.  The problem is, while the policy sits in the file, your life and the dynamic world in which we live, keeps moving forward.  And, those assets and people that you’ve covered change too.

Just ask the people who lost their homes as a result of super-storm Sandy.  Many found out that their coverage did not provide for the amount that they expected and/or realized that their policy was not protective enough for the conditions that they might encounter.  Additionally, many policies are not amended for changes, such as the elimination of a driver on an auto policy when a son or daughter graduates from college and/or acquires his/her own auto and insurance.

Just like your auto, your Risk protection strategy requires regular attention.  Whether it’s your health, life, property, liability or other insured risk, consider when your service appointments should take place and remove one more Risk from your portfolio.  Consult with a professional, just like you do with your auto, to remove the risk of uncertainty regarding what’s covered and for how much.