Voluntary benefits (benefits purchased at work) grew 9 percent in 2013.
Voluntary health product sales experienced a 13 percent increase from the prior year. Accident, critical illness and vision products grew by double-digits for the third straight year. Life insurance sales rebounded in the fourth quarter. Total life sales increased 14 percent in the fourth quarter to end the year up 2 percent. A survey of 800 employers revealed the impact of the Affordable Care Act (ACA.) Three out of four employers said they have changed or intend to change their medical plan design in the near future. Cost shifting is the most common strategy among the surveyed employers. Sixty percent said they have already or plan to increase employee contributions to the cost of coverage.
With cost shifting and other plan design changes, voluntary benefits become the best option for employees to maintain their overall insurance coverage. Research has found that more than 60 percent of employees prefer to buy health and life insurance benefits at work. Employees like using payroll deduction.
