June 10, 2021 | By David Healy – Employee Benefit News
Voluntary benefits are playing a more critical role in helping employees achieve health and financial security.
COVID-19 has reinforced the importance of coverages like life and disability insurance, and has also shown the need for care benefits following delayed screenings or treatments, such as dental or cancer insurance. As the economy begins to recover, business owners should make sure to promote these and other voluntary benefits to their employees, who now have heightened awareness of their health and financial vulnerabilities.
The surge of life insurance
Even before COVID-19, there was an average life insurance coverage gap of $200,000 per household, according to LIMRA, meaning most people are woefully underinsured based on the needs and expenses of their families. As the pandemic wears on, new interest in life insurance or additional coverage has risen substantially. The industry education group Life Happens conducted a study in 2020 and found that 25% of respondents purchased life insurance for the first time because of COVID-19. People have become more aware of the need for life insurance, and are increasingly concerned with caring for and financially protecting their families.
Disability insurance is always valuable
Workers need income protection in the event of a major illness or injury.