The Art of the Sale

It's No Accident: Voluntary Channel is Exploding

Five ideas to grow your ‘accident sales’ at the worksite

by Brian Vestergaard

Mr.Vestergaard (bvestergaard@yourlifesecure.com) is Vice President of Sales and Marketing for LifeSecure Insurance Company, based in Brighton, Mich. LifeSecure is dedicated to helping you see insurance differently and delivering an exceptional insurance experience. The company offers accident, hospital recovery, and long term care insurance products. LifeSecure is licensed in 46 states and the District of Columbia. Additional information is available at www.YourLifeSecure.com.

We’ve all witnessed the voluntary industry’s dramatic shift in recent years. Just last year, total sales grew to $7.63 billion, a 7 percent increase over 2015 and the sixth straight year of industry growth, according to a recent report from Eastbridge Consulting Group.

Industry experts are predicting that this growth will continue, as more brokers and agents follow the in-demand trend of helping worksite clients create customizable employee benefit packages. In fact, more employee benefit brokers are selling voluntary – as many as 95 percent of all benefit brokers, according to Eastbridge – and they’re using voluntary to reach new prospects and gain new clients.

If you’re looking to build a strong portfolio or grow your worksite business, (and maybe earn a little extra money), accident coverage should be on your short list of must-haves. Here are five ideas to share with your worksite clients to help grow your accident sales.

One size doesn’t fit all… and that’s a good thing

Today’s multi-generational workforce has diverse perspectives and ever-changing needs. Families are cost-conscious and looking for more complete coverage; younger workers want more choice and flexibility; and older workers are looking to improve their financial security while working toward retirement. A key value in offering accident coverage is its flexibility – it has broad appeal and employees can customize a plan to fit their financial and lifestyle needs:

  • Active singles and couples buy it to extend their health coverage and help maintain their current lifestyle in the event of an accidental injury
  • Families with children find great value in additional protection to help with unexpected costs resulting from injuries, whether they happen on the sports field or playing in the backyard
  • Older workers use the additional protection to help minimize financial risks that could result from an accidental injury

Make it easy

Product aside, a worksite client will always have questions about how adding accident insurance could impact them. In other words, what support are they getting from the insurer? That’s why it’s important to highlight how simple it can be to add accident coverage to their benefits package.

  • Simple administration
    most accident products can go from introduction to enrollment in just a few weeks. Online tools also make administration easy with automatic payroll deduction and streamlined list bill reconciliation
  • Easy and affordable for employees
    online applications are making it easier than ever for employees to get accident coverage. For example, LifeSecure’s accident product is guaranteed issue, so applicants have just two decisions to make: choosing their Annual Benefit Bank and deductible amounts, which helps them match their benefit needs with their personal budget. And that’s it – once they complete the application, they’ll have the extra insurance protection they were looking for.
  • Little to no cost
    accident insurance can be offered at little to no cost to employers, further helping your clients balance benefits and their bottom line.

24/7 Coverage

More than two-thirds of employers say that health products and other benefits will become even more important to recruitment efforts in the coming years

An idea that really resonates with employers and employees is how accident insurance can extend one’s health protection, as accident plans can pay cash benefits regardless of any other insurance – some products even pay in addition to workers compensation benefits. At a time when health deductibles and out-of-pocket costs are on the rise, policyholders can rest easy knowing that extra coverage is there to help protect against the unexpected costs of an accidental injury.

Think of it as 24/7 coverage, or even insurance on insurance. If an employee suffers an accidental injury at home or on the job, their health coverage or workers compensation, respectively, will be there to help cover most medical expenses. Accident insurance can then extend their coverage, as the cash benefits can help pay for deductibles and co-pays, or assist with things like child care, housekeeping, daily bills or whatever other out-of-pocket costs come up during recovery.

Level the playing field

Competing with larger rivals is a daily challenge on several levels for small companies. With employers of all sizes trying to gain an edge in the benefits battle, you have the ability to make life a little easier for your small business clients when it comes to competing for new hires and retaining existing employees.

More than two-thirds of employers say that health products and other benefits will become even more important to recruitment efforts in the coming years, according to the Society for Human Resource Management. Employers also say that health care products are the most important benefit to their employees. This is where accident insurance can step in to diversify and strengthen a small business’ benefits package. Take LifeSecure’s accident insurance, which can often be offered to as few as three qualified employees. This gives small businesses a big tool to compete for top talent, and strengthening benefit offerings can also impact everything from job satisfaction to productivity.

Give workers what they want

A strong benefits package is becoming an increasingly important tool for employers. Why? Because employees want to be able to choose a benefits package that can meet their needs.

  • 87 percent of workers say that a benefits package is extremely or very important in deciding to accept or reject a job .
  • 1 in 5 workers has accepted, quit or changed jobs because of benefits other than salary or wage .
  • 20 percent of today’s workers are not satisfied with the benefits offered by their current employers, and 30 percent are only somewhat satisfied.

This is where there’s an opportunity for accident coverage, as it continues to be in demand at the worksite. In 2016, accident insurance was a top-five voluntary product and accounted for 13 percent of total voluntary sales, according to Eastbridge Consulting Group.

By now you’re probably ready for a takeaway about what’s in it for you. Strengthening your portfolio with accident coverage – or even other voluntary products like hospital indemnity or critical illness protection – gives you an incredible opportunity to grow your business, even if you’re tapping into the employer market for the first time. Offering extra protection to your worksite clients can also help put extra money in your pocket. Accident coverage can be offered independent of health insurance, which means you can sell (and earn) throughout the year – not just during open enrollment.

Offering accident insurance can also be a good retention strategy for mining your personal business. Consider asking to review your existing clients’ medical plans and show where accident coverage will step up when medical plans fall short. The truth is, with so many resources available to purchase accident coverage, if you don’t start talking to your clients about it, chances are someone else will.