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The Growing Appeal of Supplemental Points to Opportunities for You and Your Clients

Before 2020, employers and employees were already starting to understand the value of supplemental benefits. Once the pandemic struck, the need became even more obvious.

A new study from Benefitfocus shows more employees are enrolling in supplemental plans.

Since 2018, participation in accident and critical illness plans has risen by more than 65%. Over the last four years, employee participation in hospital indemnity plans has more than doubled.*

The same study also shows more employers are providing supplemental coverage.

In 2021, more than two-thirds of employers are offering accident and critical illness plans. And, nearly 50% of employers now provide hospital indemnity insurance as an option.*

The growing popularity of supplemental plans suggests that employers should make offering them a priority.

What’s the Appeal?

Several aspects of supplemental could account for its surging popularity. You already know that offering products like accident, critical illness and hospital indemnity insurance gives employees a way to help cover expenses linked to an injury, serious illness or a hospital stay.

But another appealing factor for employers is flexibility. Employers can offer these plans on a voluntary basis. This gives employees the freedom to select the products that work best for them and their families.

Confidence is also an attractive feature. Having supplemental coverages can help employees feel assured their finances are prepared to weather the costs of an accident or illness. That’s because supplemental plans provide a cash benefit for employees to spend on whatever bills they need. It could be copays, rent, mortgage, groceries, child care or everyday expenses.

And if employees have supplemental benefits along with disability insurance, they can feel even more peace of mind about their finances. Disability covers a portion of their salary, but not usually 100%. A monetary supplemental benefit can provide cash for costs employees can’t cover without a full paycheck.

When they see their employees enjoy increased confidence and peace of mind, employers know they’re taking care of the people who work for them.

Bundling Can Put You Ahead

Bundling these types of coverages could put you at an advantage. If you pair supplemental insurance products with other employee benefits, you come to the table with a strategic, comprehensive approach to the benefits your clients provide.

A bundling strategy shows them your expertise. It also lets you help them meet the diverse and changing needs of their employees.

Want to find out what The Standard offers? Explore our Accident, Critical Illness, and Hospital Indemnity insurance benefits.

 

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