The Growing Importance & Value of Voluntary Benefits in a ... · voluntary benefits approach can...
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June 15, 2020
© 2020 Willis Towers Watson. All rights reserved.
The Growing Importance & Value of Voluntary Benefits in a post-COVID World
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Voluntary Benefits
As we look to emerge from the COVID pandemic and
employers begin to focus on benefits they will offer to
employees during fall open enrollment, many may consider
core medical plan changes, and should evaluate the
assortment of voluntary benefits they offer to their employees.
Willis Towers Watson research shows that employees value
choice and expect their employers to understand their needs.
With both employers and employees balancing the need for
additional protection and reduced spending, a thoughtful
voluntary benefits approach can help create a flexible
package that can meet the benefits and value needs of both
cohorts.
Specific topics the web seminar will include:
▪ Options for timely plan options
▪ The key of implementation simplicity
▪ The value of communication
2© 2020 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
Mark HebertVoluntary Benefits
Practice Leader,
Health & Benefits
Willis Towers Watson
willistowerswatson.com
Current State and Challenges
New challenges due to COVID-19:
▪ Many employers primarily focusing on:
▪ Medical coverage
▪ PTO plans
▪ 401(k) / Retirement
▪ Emergency savings
▪ Returning to workplace
▪ Employee needs are changing with different levels of risk tolerance, desire for security,
income (reduced hours, spouse layoffs) and even expenses (children home from
school)
▪ Depending on how long this lasts – we may see “old” employees coming back from
furlough and getting their old benefits back OR a slew of new hires
▪ Educational needs of each group will vary & be impacted by broader plan changes
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Vision 100% employee paid only
Critical illness/specified disease
Schedule-based accident/injury insurance
Hospital indemnity
Dental 100% employee paid only
Optional Disability Income
Legal
Executive Disability 100% employee paid only
Group term-life insurance
Identity theft
Multi-life long-term care insurance
Personal travel accident
Individual permanent-life insurance
Individual permanent-life insurance with a long-term care rider
Discount merchandise, ticket purchasing or other perks
Automobile insurance
Homeowner’s insurance
Pet insurance
Concierge services
Umbrella insurance
Payroll deduction purchasing
A Look Back….Demand is Strong and GrowingWhich of the following voluntary benefits and services does your organization currently offer, plan to offer in 2019 or is it
considering offering for 2020/2021 to your current employees?
OVERALL
4
15%
23%
36%
57%
51%
51%
74%
14%
19%
24%
33%
63%
69%
29%
65%
60%
17%
50%
58%
71%
63%
8%
13%
22%
34%
42%
42%
66%
2%
13%
14%
16%
36%
67%
18%
48%
48%
15%
24%
37%
43%
61%
Note: * Include ‘offered before 2018’, ‘Added in 2018’, ‘Planning for 2019’ and ‘Considering for 2020/2021’
Source: 2018 Willis Towers Watson Voluntary Benefits Survey
Offered before 2018/Added in 2018
By 2020/2021*
Health
Security
Income
protection
Personal
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Healthcare benefits
Wellbeing programs
Sick leave
Paid time off or vacation programs
Caregiving benefits (childcare, elder care)
Retirement benefits
Perks
Voluntary benefits
Life insurance
And Forward… Many Employers Look to Enhance Healthcare and
Wellbeing Program
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Considering the changes your company has already made and is expected to make over 2020, is your company
planning to make any benefit enhancements or reductions?
Note: “Not applicable” option excluded. Percentages may not add up to 100% due to rounding..
Source: 2020 COVID-19 Benefits Survey, United States.
47%
45%
38%
33%
26%
23%
14%
12%
2%
47%
51%
61%
62%
73%
59%
82%
87%
97%
6%
4%
1%
5%
1%
18%
4%
1%
1%
Benefit enhancements Benefit reductions
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Polling Question: Which Industry Best Aligns With You?
___ Energy & Utilities
___ Financial Services
___ General Service
___ Healthcare
___ IT & Telecom
___ Manufacturing
___ Public sector & education
___ Wholesale & Retail
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Benefit Enhancements and Reductions by Industry
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Energy and
Utilities
Financial
Services
General
ServicesHealthcare
IT and
TelecomManufacturing
Public sector
and education
Wholesale and
Retail
Healthcare
benefits
Wellbeing
programs
Sick leave 0% 0% 0%
Paid time off or
vacation programs0%
Caregiving
benefits (childcare,
elder care)
0% 0% 0% 0%
Retirement
benefits
Perks
Voluntary benefits 0% 0% 0% 0% 0%
Life insurance 0% 0% 0% 0% 0% 0%
Benefit enhancements
Benefit reductions
Source: 2020 COVID-19 Benefits Survey, United States.
51%
41%
35%
35%
30%
21%
3%
7%
1%
59%
57%
47%
51%
38%
36%
14%
19%
5%
34%
33%
30%
23%
22%
20%
11%
8%
2%
39%
54%
36%
35%
43%
19%
17%
14%
2%
59%
52%
38%
41%
26%
30%
12%
13%
46%
41%
37%
30%
18%
20%
16%
11%
2%
51%
43%
44%
29%
23%
28%
17%
15%
2%
45%
43%
36%
24%
14%
17%
14%
11%
3%
11%
6%
1%
4%
11%
11%
1%
1%
3%
3%
1%
3%
1%
7%
3%
2%
10%
1%
24%
4%
1%
9%
4%
1%
8%
24%
1%
1%
3%
3%
1%
1%
8%
1%
3%
3%
3%
24%
5%
1%
6%
2%
2%
6%
2%
14%
4%
10%
9%
3%
5%
25%
4%
3%
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Voluntary Benefits Impact Wellbeing
Components of VB programs can impact nearly all aspects of wellbeingP
hysic
al
Em
oti
on
al
Fin
an
cia
lS
ocia
l
Thriving
Balanced
Secure
Connected
Wellbeing
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Polling Question: Which are the Top 2 Most Important to your
Employees Right Now?
___ Physical
___ Financial
___ Emotional
___ Social
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Product Focus: Key COVID-19 Related Voluntary Benefits
Benefit COVID-19 Related BenefitEase of
Implementation
Hospital
Indemnity
▪ All plans pay a benefit related to hospitalization, as long as
requirements have been met:
▪ Hospital admission benefit
▪ Daily hospitalization benefit – ICU typically pays 2x
▪ Behavioral health and drug/alcohol rehab benefit may be included
Critical Illness
▪ Some carriers offering an infectious disease benefit
▪ A few carriers are also introducing an occupational PTSD benefit
▪ Age banded rates can be harder to build
Accident/Injury
▪ Wellness or Health Screening benefit may cover COVID-19 testing
▪ If the plan includes a Hospital Sickness Confinement rider, there may
be hospital admission and confinement benefits
Legal
▪ Increased interest in completing legal documents:
▪ Advance directives, Wills
▪ Estate planning
• Divorce
Identity Theft
▪ Significant uptick in cyber criminal activity due to work from home, new
subscriptions/downloads and IRS tax filing delay
▪ Some vendors offering free coverage for new employers through 2020
▪ Monitoring, remediation and insurance protection benefits
Pet ▪ Increase in pet adoptions
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Other VB Products
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Benefit COVID-19 Related BenefitEase of
Implementation
LTC ▪ COVID may increase awareness about need
Auto / Home ▪ Rate decreases for many based on driving patterns / being home
Discounts ▪ Cost savings especially appreciated
Payroll
Purchasing▪ Could be helpful for employees to spread payments
Student Loans▪ Tax implications are favorable through year end 2020 because of the
CARES Act
Life ▪ Increase awareness about need
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Keep it Simple
Implementation considerations
Consider your employee profile and benefits platform
▪ Certain benefits can provide a greater impact (especially when coupled with other
potential plan changes); for example – a reduction in DI benefits could be partially offset
with a CI plan that provides a lump sum payment that can be used to pay ongoing bills
▪ Look for options with guarantee issue for employee spouse and child
▪ Who does your ben admin partner like working with?
▪ Balance that with ease of implementation
▪ Rate simplicity (composite vs age banded)
▪ Plan options (limit choice)
▪ Consider contracting
▪ Look at vendors where you have existing relationships
▪ Focus on communications
▪ Make sure employees understand new options
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Communications
Consider the breadth of your plan changes & align the communication to highlight the key
changes:
▪ Medical
▪ Disability, Life
▪ 401(k)
▪ Other (PTO, etc)
Communication vehicles:
▪ Keep in mind that traditional models may not work this year
▪ Print – does that work for this year for your employees?
▪ “Snack sized” electronic communications
▪ Webinars / zoom calls / virtual benefit fairs
▪ Benefit coaches who can help educate employees on all benefit options
▪ Telephonic options available
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Key Takeaways
▪ Focus on meaningful products for YOUR employees
▪ Align changes / additions to other adjustments
▪ Don’t try to do too much
▪ Keep it simple
▪ Choose the right vendors
▪ Communicate like never before
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Polling question: What are you Binge-watching now?
Word cloud
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Questions and Contact
16© 2020 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.
Mark HebertVoluntary Benefits Practice Leader, Health & Benefits
Willis Towers Watson