search

Protecting Millennials With Voluntary Benefits

posted by AHIP

on July 13, 2016

The buying power millennials is surpassing baby boomers. When you consider the characteristics of a millennial—intelligent, technology savvy, multitasker, collaborator—according to a new Aflac WorkForces Report, you can add insurance purchaser to the list.

Those born between 1980 and 1991 are more prone to paying premiums to protect belongings such as cell phones, pets, and even identity theft, according to the report. They’re also opposed to debt. According to a recent Bankrate survey, “63 percent don’t have credit cards.”

The dichotomy between millennials’ reluctance to accrue debt and willingness to buy insurance creates an opportunity for more education about voluntary workplace benefits.

Without coverage, a single illness or accident could severely cripple a young consumer with thousands of dollars of out-of-pocket expenses. As health care costs continue to rise, it is important that employees receive meaningful information about the value of voluntary benefits, such as:

  • The ability to be prepared to pay for out-of-pocket expenses that are not covered by your primary health insurance;
  • The flexibility of receiving cash benefits directly to the policyholder, regardless of any other insurance he or she may have; and
  • Greater ability to focus in the workplace. (30 percent of millennials said personal issues caused distractions at work in the past 12 months.)

Voluntary insurance aids both the employer and employee two-fold. First, it is doesn’t have huge budgetary implications, and second, it can ensure employees have the funds they need in case of a medical emergency. In fact, nearly 60 percent of employees report they wouldn’t be able to adjust to the financial costs associated with a serious injury or illness. These findings show millennials and people of all generations can look to voluntary benefits for financial security and peace of mind.