Voluntary benefits can be a key point of confusion amongst both employees and employers. Get the truth behind six common ones in our presentation.

1. Debunking
Six Myths About
Voluntary Benefits

2. PAGE 2
Introduction to Voluntary Benefits
Voluntary benefits (VBs) are insurance products that are
offered through employers but paid entirely by
employees, typically through payroll deferral.
• Critical illness
• Accident
• Vision & Dental
• Disability
• Pet Insurance
• Financial
counseling
• And more…

3. State of Voluntary Benefits
As employers grapple with rising
health care costs, they are
increasingly turning to voluntary
benefits to
 fill coverage gaps
 improve employee
satisfaction
 compete for top talent
Yet myths still exist about
voluntary benefits.

4. PAGE 4
Myth #1: Employers only offer VBs to Reduce Costs
Ninth Annual Study of Employee Benefits Today and Beyond (Prudential)
Work Redefined: A New Age of Benefits: 15th Annual U.S. Employee Benefits Trend Study, MetLife
58%of employees want
customized benefits based on
their lifestyle
81%of employers expect demand
of VBs to increase over the
next five years
Voluntary Benefits help employers expand their benefits offerings.

5. PAGE 5
Employer Takeaway:
VBs can offer an easy,
inexpensive solution to the varying
needs and demands of today’s
workforce.

6. PAGE 6
Myth #2: VBs are primarily “nice to haves”
Board of Governors of the Federal Reserve System, “Report on the Economic Well-Being of U.S. Households in 2014,”
2015
MetLife, 2018 Employee Benefits Trends Study
46%of employees say they either
could not cover an emergency
expense costing $400+
without borrowing money or
selling something
65%of employees say voluntary
benefits help them to limit out-
of-pocket medical expenses
VBs can help employees feel more secure about their ability to pay substantial
and unexpected medical expenses.

7. PAGE 7
Employer Takeaway:
Health-related VBs—especially
when offered alongside HDHPs
and HSAs—can be key in helping
employees control health care
costs

8. PAGE 8
Myth #3: Voluntary benefits are only for blue-collar workers
2017 Aflac WorkForces Report
29%of government employees
31%of financial services employees
Voluntary benefits interest employees from many industries, including:
41%of professional services
employees
39%of transportation &
warehousing employees

9. PAGE 9
Employer Takeaway:
There are voluntary benefits available
today that will help all types of
employees alleviate their personal risks
and concerns.

10. PAGE 10
Myth #4: VBs are not subject to ERISA
Board of Governors of the Federal Reserve System, “Report on the Economic Well-Being of U.S. Households in 2014,”
2015
MetLife, 2018 Employee Benefits Trends Study
Voluntary benefits can be exempt if the employer follows safe harbor rules:
Employer contributions (or from an employee organization) are not allowed
Participation must be entirely voluntary
The employer (or employee organization) must not receive cash, incentives,
or other compensation connected to the voluntary benefit
Employer cannot “endorse” the plan; involvement must be limited to allowing
the insurer to advertise the plan, collecting premiums (on an after-tax basis)
through payroll deductions, and remitting those premiums to the insurers

11. PAGE 11
Employer Takeaway:
While there are some benefits to
having your voluntary benefits
subject to ERISA, it’s critical that
employers work with their brokers,
counsel, etc., to make sure their
voluntary plans are treated as
intended.

12. PAGE 12
Myth #5: My voluntary benefits broker will give my
employees the hard sell, and then disappear
Strategies and Service Innovation Shaping Brokers' Transformation from Sales Representatives to Strategic Benefits
Consultants
65%of brokers say their clients
look to them for help with
voluntary benefit offerings
76%
of brokers offer benefits
education & enrollment services.
With competition heating up amongst brokers, those who don’t focus on
quality of their offerings and service will not succeed. Service is more
important than ever.
92% of brokers who offer personalized benefits education services say
they do it to position themselves as trusted consultants to employers.

13. PAGE 13
Employer Takeaway:
Brokers and voluntary benefits
providers have your employees’ best
intentions in mind when introducing
VB products—and your employees
will be open to hearing about them.

14. PAGE 14
Myth #6: My employees wouldn’t be interested in
voluntary benefits products
Ninth Study of Employee Benefits Today and Beyond, Prudential, 2016
One study found the majority of employees are “interested” or
“very interested” in vision, life, long term care, dental, and
disability insurance.
When sold in a group, VBs provide a low cost option for
employees.
Employees usually don’t receive much info on how VBs coordinate with
standard benefit offerings—with personalized communication and education,
they’re more likely to see the value in VB offerings.

15. PAGE 15
Employer Takeaway:
Many employees are actually
interested in VBs—as long as the
options meet their needs and
they understand the value of the
additional coverage.

16. Conclusion – The Six Takeaways
1. Employers offer VBs to increase employee satisfaction with benefits,
not just to reduce costs.
2. VBs can be key for employees in controlling health care costs.
3. VBs are for all employees, not just blue-collar ones.
4. VBs may be subject to federal regulations, depending on how
employers and their advisers handle them.
5. VB brokers are more committed to service than ever before.
6. Employees might be more interested in VBs than employers think.
PAGE 16

17. PRIVATE AND CONFIDENTIAL | PAGE 17
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