the growing importance & value of voluntary benefits in a ... · voluntary benefits approach...

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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


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


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



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

© 2020 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.


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


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


Polling Question: Which Industry Best Aligns With You?

___ Energy & Utilities

___ Financial Services

___ General Service

___ Healthcare

___ IT & Telecom

___ Manufacturing

___ Public sector & education

___ Wholesale & Retail



Benefit Enhancements and Reductions by Industry


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%


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

© 2020 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.8


Polling Question: Which are the Top 2 Most Important to your

Employees Right Now?

___ Physical

___ Financial

___ Emotional

___ Social



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

© 2020 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.10


Other VB Products


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


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



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



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



Polling question: What are you Binge-watching now?

Word cloud



Questions and Contact


Mark HebertVoluntary Benefits Practice Leader, Health & Benefits

Willis Towers Watson

[email protected]

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