Avoid 2 Major Mistakes When Buying Voluntary Benefits

by Brian Honan Employee benefits consulting firm

Voluntary benefits are becoming an increasingly important part of an employer’s strategy to attract and retain top talent.

What is Voluntary Life Insurance?

‘The voluntary life insurance program is a protection plan that provides a cash benefit to the beneficiary upon the death of the insured.’

The employee pays a monthly premium in exchange for the insurer’s guarantee of payment upon the insured’s death.

In addition, with employer sponsorship, the voluntary life insurance policies are less expensive than the individual life insurance policies sold in the market.

However, the business owners aren’t aware of the voluntary insurance plans and cannot make our how to invest in the plans and what would work best for the employees.

Here are a few mistakes that the businesses make while choosing voluntary life insurance program and need to be avoided-

Not tailoring your plan

A survey conducted by Aflac analyzed around three-quarters of workers and reported, “They prefer receiving a broad package of benefits including major medical, dental, vision, disability and life insurance. In some cases, it can be wastage of your money as Rob Lynch’s Forbes blog says- ‘You don’t need to offer all workers everything thing- it’s more important to tailor your product mix to the specific workers you are looking to attract and retain. “Small employers should focus on a core set of benefits- medical, dental, disability and vision care,” Lynch writes.

Working with an amateur benefit administration

Outsourcing HR functions can be your option to save time and a great deal of money. But when it comes to voluntary insurance plans, every benefit administration is not equally skilled. When shopping for a benefits administration firm, it is important to ask about their experience in the field and feedback of their existing clients. In case, you contact a benefits organization that doesn’t have adequate knowledge, you and your employees, both will be in trouble.

Get in touch with an experienced voluntary benefits provider and choose the best plans for you.