In a challenging economic climate, rising benefits costs can continue to put pressure on employers and employees alike. In fact, a recent Hewitt Associates survey reports that nearly two-thirds of employers are asking workers to claim responsibility for a greater portion of their health care costs.
In recent years, the increasing popularity of voluntary benefits has caused workers at all levels to share more of the cost of their benefits, as well as requiring them to assume more of the responsibility for deciding which benefits are best for them and their families. Unfortunately, most workers are not prepared to make key benefits decisions, such as how much to spend and how to allocate premium dollars among the different offerings.
The question is, where can American workers turn for help making these critical benefits decisions? Trusted advisors, such as employers, human resource professionals, benefits consultants, and insurance agents and brokers can all be great sources of education and influence, and can point employees to credible educational tools and resources.
The best starting point for you as a producer is to help employees understand the value and importance of their income. For virtually every working American, the ability to earn a stable income is their most valuable asset. The average 40-year-old who earns $50,000 per year (assuming modest annual salary increases and the occasional promotion) will earn roughly $2 million by the age of 65. A wage earner's income is the foundation from which all financial security flows; income allows consumers to pay their bills, maintain a home or apartment, save for the future, fund a child's education, accumulate funds for retirement, pay for insurance, and so on.
After establishing the fundamental importance of income, you must help — and convince — every employee to protect it. Workers chronically underestimate the risk of losing their income as a result of an illness or injury. The average 35-year-old has a roughly three in 10 chance of missing work for three months or longer because of an illness or injury. (A wage earner can calculate their own chance of becoming disabled and missing work at www.whatsmypdq.org.)
