Voluntary Benefits Spotlight: Group Accident Insurance
September 20, 2022
Our monthly look at voluntary benefits returns once again, this time with a focus on group accident insurance. This is a fantastic product that can help you target your clients’ older employees. Any of your clients with a significant number of older workers make good candidates.
Group accident insurance is a form of supplemental insurance that helps cover out-of-pocket costs incurred as a result of common accidents. Note that accident insurance is a fixed indemnity product. That means payment amounts are predetermined based on the type of injury incurred.
As a general agency, we know how important it is for brokers to have a full range of options they can offer clients. In light of that, we encourage you to introduce group accident insurance at the earliest possible convenience, and here’s why:
A standard health insurance policy remits payment to the healthcare facility at which services were rendered. Group accident insurance remits payment directly to the subscriber. Combined with the fixed indemnity nature of the product, group accident insurance could cover virtually any out-of-pocket expense.
Next, a typical group accident policy continues to pay even after an employee has met the out-of-pocket limits of their standard health insurance plan. That means a subscriber can make a claim even if they have no out-of-pocket expenses for a particular injury.
Payouts can cover everything from transportation costs to childcare costs incurred when the subscriber was seeking treatment. Remitting payment directly to the subscriber keeps the subscriber in complete control.
Group accident insurance tends to be very affordable. For less than an employee and a spouse would spend on a good meal, they can pay for a month of group accident insurance.
Being a voluntary benefit, your clients may choose to split the cost with their employees or have them pay the full cost. In the latter case, a typical policy is still very affordable. Subscribers truly get a lot for a little.
Moving on to the intangible benefits, offering group accident insurance can give employees who worry about covering out-of-pocket expenses some peace of mind. Knowing they have a supplemental policy in place means fewer worries about the financial impacts of sustaining an injury.
That peace of mind can translate into better company morale. Think about it. A nice basket of voluntary benefits makes employees feel like they are more appreciated. It makes them feel like employers care about them as people.
Group accident insurance is just one of many voluntary benefits you could offer to your customers. It is something you should think about for the simple fact that voluntary benefits make a difference.
With ever-increasing health insurance deductibles, the need for more plan customization, and changing employee expectations, there’s a higher demand than ever for voluntary benefits. In today’s highly competitive market where employee acquisition and retention are top concerns, be your customer’s trusted advisor and full-service broker by offering the voluntary benefits that are in demand.
Group accident insurance is a good place to start.