COLUMBUS, Ga., Jan. 20, 2015 /PRNewswire/ -- Most American
employees (88 percent) at least somewhat agree they consider
voluntary insurance benefits a part of a comprehensive benefits
program according to the 2014 Aflac WorkForces Report, a study
released by Aflac, the leading provider of voluntary insurance in
the United States. With plans such
as accident, critical illness and hospital confinement, employees
view voluntary benefits as a way to fill in coverage gaps. In fact,
63 percent see a growing need for voluntary benefits options in
2014 compared to previous years, and 48 percent of employees say
they are more knowledgeable about voluntary benefits than they were
last year.
Due to increasing health care costs and an evolving health
benefits landscape, the demand for voluntary plans is on the rise.
According to a LIMRA survey, voluntary health product sales were
$2.6 billion in 2013, which
represents a 13 percent increase over 2012.1
Additionally, voluntary products have steadily increased in
popularity in the workplace. In fact, the Aflac study found from
2012 to 2013, voluntary insurance plans have seen a 10 percent
growth among companies offering voluntary insurance.
"Health care reform has turned workers' attention to their
personal health care situations," said Matthew Owenby, vice president of Human
Resources at Aflac. "They're also looking closely at their
insurance coverage to identify gaps that might leave them
vulnerable to rising medical expenses. Consequently, we are seeing
an increased need for voluntary benefits among American workers.
One way employers can help their employees with no direct cost to
the company is to offer voluntary insurance, which provides an
extra layer of protection when they need it most."
Employees remain financially unprepared
Employees' financial conditions remain fragile. A key driver
that can put a strain on someone's budget is unexpected
out-of-pocket costs that occur even with health insurance. The
Aflac study notes that many workers are unprepared to cope with a
financial crisis if faced with a health emergency. For example,
about 7 in 10 workers (69 percent) at least somewhat agree they
regularly underestimate the total costs of an illness or injury,
and 66 percent wouldn't be able to adjust to the large financial
costs associated with a serious injury or illness.
The Aflac study also reveals that health care costs could have a
long-lasting effect on American workers' creditworthiness.
Employees say medical costs are affecting their credit scores,
keeping them from paying other bills and hindering their efforts to
save for a rainy day or retirement:
- 53 percent say their benefits cost were considerably or
slightly more compared to last year.2
- 42 percent are not prepared to pay the out-of-pocket expenses
for an unexpected serious illness or accident.
- 24 percent said high medical costs have negatively affected
their credit scores and/or they've been contacted by collection
agencies about outstanding medical bills.
Employers gain more by providing more options
Employers should consider providing a comprehensive benefits
package that includes voluntary benefits options to contain health
care costs while helping offset employees' increased medical
expenses. Policyholders receive cash benefits to help pay for their
rent, mortgage, childcare or groceries, among other out-of-pocket
expenses that major medical insurance does not cover.
In fact, more employers have already begun offering voluntary
benefits. The Aflac study found 35 percent of U.S. employers
offered voluntary insurance to their employees in 2014, a
9-percentage-point increase from 2012. These benefits options not
only enhance benefits offerings but also help employers retain and
attract workers.
According to the Aflac study, when compared to workers who are
not offered voluntary insurance options, employees who are enrolled
in voluntary insurance are 18 percent more likely to be extremely
or very satisfied with their jobs. Additionally, they are:
- 38 percent more likely to be extremely or very satisfied with
the overall benefits package offered to them.
- 19 percent less likely to be extremely or very likely to look
for another job in the next 12 months.
- 64 percent more likely to completely or strongly agree they
feel fully protected by their current insurance coverage.
What's the bottom line for employers? Benefits matter. New and
innovative approaches to improving benefits communication and
education strategies as well as building robust benefits packages
are becoming more mainstream, including a growing reliance upon
voluntary benefits.
To learn more about the 2014 Aflac WorkForces Report, visit
AflacWorkForcesReport.com or follow @aflac on Twitter.
About the Aflac WorkForces Report
The 2014 Aflac WorkForces Report is the fourth annual Aflac
employee benefits study examining benefit trends and attitudes. The
study, conducted by Research Now, captures responses from 1,856
benefits decision-makers and 5,209 employees across the U.S. To
learn more about the Aflac WorkForces Report, visit
AflacWorkForcesReport.com.
Methodology
Conducted by Research Now on behalf of Aflac, the research
contained two components – employer research and employee research.
The Employer Survey was conducted online within the United States from Jan. 7-23, 2014, among 1,856 benefits
decision-makers. Results were representative of U.S. companies with
at least three employees based on company size (number of
employees) and industry. No estimates of theoretical sampling error
can be calculated; a full methodology is available.
The Employee Survey was conducted online within the United States from Jan. 7-27, 2014, among 5,209 employed adults ages
18 and older who are employed full or part time at a company with
three or more employees and not retired. The first 3,124 interviews
were nationally representative, while the remaining 2,085
interviews were conducted among the top 20 designated market areas
(DMAs) – 100+ interviews per DMA. Results were weighted as needed
to match U.S. demographics and to enable year-over-year trending.
No estimates of theoretical sampling error can be calculated; a
full methodology is available.
For complete survey methodology, including weighting variables,
please contact Aflac Media Relations at mediarelations@aflac.com or
706.243.5543.
About Research Now
Research Now is the leading global online sampling and online
data collection company. With more than 6 million panelists in 38
countries worldwide, Research Now offers a full suite of data
collection services. For more information, please visit
researchnow.com.
About Aflac
When a policyholder gets sick or hurt, Aflac pays cash benefits
fast. For nearly six decades, Aflac insurance policies have given
policyholders the opportunity to focus on recovery, not financial
stress. In the United States,
Aflac is the leading provider of voluntary insurance at the
worksite. In Japan, Aflac is the
number one life insurance company in terms of individual policies
in force. Aflac individual and group insurance products help
provide protection to more than 50 million people worldwide. For
eight consecutive years, Aflac has been recognized by Ethisphere
magazine as one of the World's Most Ethical Companies. In 2014,
FORTUNE magazine recognized Aflac as one of the 100 Best Companies
to Work For in America for the 16th consecutive year. Also, in
2014, FORTUNE magazine included Aflac on its list of Most Admired
Companies for the 13th time, ranking the company number one in the
life and health insurance category. Aflac Incorporated is a Fortune
500 company listed on the New York Stock Exchange under the symbol
AFL. To find out more about Aflac, visit aflac.com or
espanol.aflac.com.
Media contact – Kip Havel,
706.243.5543 or mediarelations@aflac.com
1 U.S. Worksite Sales Survey, LIMRA, 2013
2 2014 Aflac Open Enrollment Survey
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SOURCE Aflac