Key Takeaways:
- Many businesses do not know about ancillary benefits – you can educate them
- Ancillary benefits are attractive to prospective and current employees
- The cost of adding ancillary benefits to a package is low for employers
- Clients will save money overall when employees go in for routine care now
Insurance brokers who want to make more commissions should be selling ancillary benefits. And you can easily do so by using your knowledge and taking an educational approach. Many large and small businesses do not offer their employees voluntary and ancillary benefits as part of their package. While some might be trying to cut costs, many small businesses simply do not know about them and the value they bring. Thanks to dental and vision benefits people can be active in managing their health and preventing larger issues before they come up. In fact, companies have saved over $5.8 billion over four years due to vision coverage. To get you started here are five reasons ancillary benefits are valuable for all involved. You can go ahead and share these tips at your next client meeting and see how it works:
- Fill the gaps of a limited benefits package. Dental and vision packages are not included in many general insurance packages. This results in employees who either need to pay for these services out of pocket or find their own dental and vision insurance. Employees are inclined to seek out employers who provide these benefits. Highly skilled individuals can be selective and will go to businesses that offer the best benefits packages. Adding on these voluntary benefits will keep employees happy by filling in gaps of more limited offerings.
- Ancillary costs can be paid with pre-tax dollars. Employees can increase the value and savings of voluntary insurance by using the health financial account that already comes as part of their benefits. Employees can have pre-tax money taken out of their paycheck and set aside on an FSA, HSA or HRA account for planned expenses like dental X-rays and dental procedures.
- Happy employees make for productive and loyal employees. Perhaps the best reason to include voluntary and ancillary benefits in an employee health insurance package is to retain the best employees in the field. Employees who are happy with their insurance plans are more likely to stick around and report overall job satisfaction. It does not take rocket science to determine that satisfied employees are more productive and efficient. Furthermore, employees who have good insurance plans are less likely to miss work for health-related issues. This leads to the next point.
- Preventive care. We often think of preventive care as a yearly physical with a family doctor. However, preventive care for the eyes and mouth can be just as important. You can detect and prevent health problems early without having to miss work in the future. For instance, having dental exams covered by insurance means employees are less likely to need extensive dental work done.
- Low cost for employers. When packaged with traditional healthcare, voluntary or ancillary benefits comes at an exceptionally low cost for employers.
Looking at the overall picture, it is an easy decision for employers who want to stay competitive. You have the power to convey these benefits and educate your clients about ancillary and voluntary products. As an added benefit, you will get higher commissions. It a win-win-win!