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Distracted by health reform? Wondering how to beat your income goals in 2013 and beyond?

Disability insurance (DI) + long-term care insurance (LTCI) may be the winning teamwork that makes your business and personal clients’ dreams work. And when your clients’ dreams work (thanks to your great planning) more business and referrals usually follow. Read on for the career-changing details …

Low-cost health care creates high-cost retention issues

Federally mandated healthcare reform coupled with a stagnant economy has had significant impact on employee benefit packages across all industries. To contain costs, companies have streamlined benefits packages and passed increased costs on to their employees. This lean and mean approach to employee benefits has provided companies with some interesting insight – specifically that the lowest cost strategy is not necessarily the wisest strategy.

A November 2012 report by CBS MoneyWatch estimated that the cost of replacing a worker earning $50,000 or less a year (which represents 40 percent of all jobs in the United States) is 20 percent of the worker’s salary, underscoring the fact that it is more expensive to hire new employees than it is to retain existing personnel. Employee retention strategies are the subject of increased attention in human resource departments, with a comprehensive benefits package being one of the key components of discussion.

Voluntary benefits bridge the gap

Attracting and retaining high quality employees requires more than highly competitive pay. Benefits are integral to employees’ total compensation packages and comprehensiveness factors heavily into a company’s overall attractiveness as an employer. A comprehensive benefits package offers a diverse array of programs that are designed to address the needs of the employee whether on active status, sick, disabled or retired. Voluntary benefits such as disability insurance and long-term care insurance are just as important as medical, dental, vision, life and retirement.

DI protects clients’ paychecks during extended periods of illness or injury. And, LTCI is critical for retirees who would like to protect their assets from the exorbitant cost of assistance with Activities of Daily Living (ADL).

As you can see, offering voluntary group benefits helps your business clients retain their employees and it helps employees retain their dreams of financial security by protecting them throughout their working years and retirement.

Voluntary benefits are especially attractive to employers as they carry little or no cost to the company while providing high value to the employee. A 2010 study conducted by Harris Interactive for AFLAC stated that 58 percent of small business owners believe that their employee productivity suffers 5 to 20 percent because employees are concerned with personal issues. A 2009 Harvard Research study revealed that 62 percent of personal bankruptcies are caused by medical problems, further underscoring the need for DI and LTCI. Employee productivity increases when voluntary benefits are offered, making these benefits one of the wisest inclusions to employee compensation.

As you scope your sales growth plan for the rest of 2013 and beyond, realize that health reform presents a small window of opportunity. Those who offer smart solutions in the midst of the health reform chaos of change will forge ahead as industry leaders. You don’t have to be in employee benefits sales to benefit from the health reform window of opportunity. Use your DI and LTCI expertise to create a teamwork combo sale that makes dreams work for you, your employer clients and their employees.

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