THE VOLUNTARY VALUE FORMULA
END ONE-SIZE-FITS-ALL BENEFITS
All data from the 12th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted
Metropolitan Life Insurance Company, NY, NY 10166
L0914392535[exp1115][All States]
Speaker:
Date:
Voluntary Value Factors:
Need + Features + Price = Value
The benefits discussion is no longer focused on why you should offer voluntary benefits; now
it’s about how. How to mix, match and personalize different products for maximum
effectiveness.
Satisfying the various needs and interests of a multi-generational, economically diverse
workforce requires offering employees a wider range of options so they can customize their
benefits. If that sounds costly and complex, it doesn’t have to be.
All data from the 12th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted
Metropolitan Life Insurance Company, NY, NY 10166
L0914392535[exp1115][All States]
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Voluntary Value Factors:
Need + Features + Price = Value
The Voluntary Value Formula incorporates three key factors that are most important to
employees when they are assessing their voluntary benefit options: needs, plan and policy
features, and product price. When a benefit meets these criteria, an employee is much more
likely to perceive the value of the offering, thus more likely to act.
All data from the 12th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted
Metropolitan Life Insurance Company, NY, NY 10166
L0914392535[exp1115][All States]
3
Voluntary Value Factors:
Need for Coverage
When an employee sees how a product relates to a real life problem, an emotional
connection is created. Examples of needs might include replacing lost contact lenses or
paying for an unplanned dental crown.
All data from the 12th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted
Metropolitan Life Insurance Company, NY, NY 10166
L0914392535[exp1115][All States]
4
Voluntary Value Factors:
Features that Fit
Features preferred by one employee may not have the same appeal to their colleague.
Access to designer eyewear or cosmetic dental work may be a deal breaker for some, while
others may be more interested in discount offers on bundled auto and homeowner
coverage.
All data from the 12th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted
Metropolitan Life Insurance Company, NY, NY 10166
L0914392535[exp1115][All States]
5
Voluntary Value Factors:
Price Perception
The right price is not about the lowest price, it’s about value. Feelings come into play. Peace of
mind, protection of loved ones and financial security can all make a benefit “worth the price for
me.”
All data from the 12th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted
Metropolitan Life Insurance Company, NY, NY 10166
L0914392535[exp1115][All States]
6
Voluntary Value Formula:
More Choice, More Value
To perceive the value of a voluntary benefit
offering, employees must make the connection
between their needs and the solution provided
by the benefit.
Among employees of all ages there is a desire for
more personalization, more choice and more
support from their workplace benefits.
Voluntary benefits can cost-effectively deliver on
this desire for choice and self-selection because
workers are prepared to pay for the benefits
they want.
It is important to offer a broad and rich portfolio
of voluntary benefit products to enable
individuals to identify “benefits that work for
me” in the available mix.
All data from the 12th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted
Metropolitan Life Insurance Company, NY, NY 10166
L0914392535[exp1115][All States]
7
Voluntary Value Formula:
Satisfy an Audience of One
By choosing products and features that have specific meaning for each segment of the
population and framing the advantages of owning the benefit accordingly, the value will be
more readily apparent to those employees.
Examples of generationally appropriate features could include guaranteed issue with no
eligibility restrictions for pre-existing conditions, which might be more important for an older
workforce. Similarly, the portability of the benefits may be more appealing to younger workers
who expect to change jobs more frequently.
FINANCIAL SECURITY
HEALTH CARE
• Underemployed
• Highest utilization of bankcards
• 61% are concerned about living
expenses
• 69% concerned about access to
affordable health care
• Likely to opt for low-cost, high
deductible medical plans
• Raising families
• Highest debt load
• 65% are concerned about living
expenses
• Likely to be responsible for children’s
health care
• 52% are interested in having more
health plans to choose from
• Focused on rebuilding nest egg
post-recession
• 50% are concerned about living
expenses
• Regular users of health care due to
frequency of chronic conditions
• 52% are interested in having more
health plans to choose from
All data from the 12th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted
Metropolitan Life Insurance Company, NY, NY 10166
L0914392535[exp1115][All States]
8
Formula Framework for a Multi-Generational Workforce:
Life Insurance
EXTRA INSIGHT:
57% of employees would like
the option to purchase more life
coverage at work
All data from the 12th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted
Metropolitan Life Insurance Company, NY, NY 10166
L0914392535[exp1115][All States]
9
Formula Framework for a Multi-Generational Workforce:
Disability
EXTRA INSIGHT:
A good rule of thumb is for
employees to buy enough
disability coverage to protect
60-80% of after-tax income to
cover essential monthly
expenses such as shelter, food,
transportation, education and
health care.
All data from the 12th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted
Metropolitan Life Insurance Company, NY, NY 10166
L0914392535[exp1115][All States]
10
Formula Framework for a Multi-Generational Workforce:
Dental
EXTRA INSIGHT:
164 million work hours
are lost each year to
dental disease or dental
visits. People with dental
insurance are more likely
to seek regular treatment.
All data from the 12th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted
Metropolitan Life Insurance Company, NY, NY 10166
L0914392535[exp1115][All States]
11
Formula Framework for a Multi-Generational Workforce:
Vision
EXTRA INSIGHT:
Vision is a widely used
benefit that can help
reduce health care
costs. An eye exam is
the first line of defense
for several chronic
diseases.
All data from the 12th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted
Metropolitan Life Insurance Company, NY, NY 10166
L0914392535[exp1115][All States]
12
Formula Framework for a Multi-Generational Workforce:
Supplemental Health
EXTRA INSIGHT:
Critical illness
insurance can be
confused with health
insurance, so
additional education
is helpful.
All data from the 12th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted
Metropolitan Life Insurance Company, NY, NY 10166
L0914392535[exp1115][All States]
13
Formula Framework for a Multi-Generational Workforce:
Supplemental Health
EXTRA INSIGHT:
Accident insurance
sales in the
workplace were up
14% across the
industry in 2011,
showing the
growing popularity
of this benefit.
Accident claims for
ER visits increase
nearly 20% in
summer.
All data from the 12th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted
Metropolitan Life Insurance Company, NY, NY 10166
L0914392535[exp1115][All States]
14
Formula Framework for a Multi-Generational Workforce:
Auto and Home
EXTRA INSIGHT:
Auto and Home protection is a
benefit that almost everyone can
use, and purchasing through the
workplace provides convenient
payroll deduction -- as well as
competitive rates.
All data from the 12th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted
Metropolitan Life Insurance Company, NY, NY 10166
L0914392535[exp1115][All States]
15
Formula Framework for a Multi-Generational Workforce:
Legal Services
EXTRA INSIGHT:
A group legal plan can provide on-tap legal support that can help limit the number of missed
days and reduce employee stress.
All data from the 12th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted
Metropolitan Life Insurance Company, NY, NY 10166
L0914392535[exp1115][All States]
16
The Value of Voluntary Benefits:
Employee Loyalty
In the end, designing the optimal voluntary benefit strategy is not only good for your employees -it also has advantages for the business. It contributes to a robust and competitive benefits
program to attract and retain talent without adding to benefit costs. Additionally, it can generate
goodwill towards the company, which can translate into increased employee loyalty and
productivity.
All data from the 12th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted
Metropolitan Life Insurance Company, NY, NY 10166
L0914392535[exp1115][All States]
17
Questions?
Learn more at:
BenefitTrends.MetLife.com
All data from the 12th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted
Metropolitan Life Insurance Company, NY, NY 10166
L0914392535[exp1115][All States]
18
About the Study
About the survey
MetLife’s 12th Annual U.S. Employee Benefit Trends Study was conducted during October and November of 2013 and
consisted of three distinct studies fielded by GfK Custom Research North America. The employer survey comprised
1,510 interviews with benefits decision-makers at companies with staff sizes of at least two employees. The employee
survey comprised 1,203 interviews with full-time employees age 21 and over, at companies with a minimum of two
employees. The broker survey comprised 524 interviews with brokers and consultants who sell group employee
benefits to companies of all sizes.
About GfK
GfK is one of the world’s largest research companies, with more than 13,000 experts working to discover new insights
into the way people live, think and shop, in over 100 markets, every day. GfK is constantly innovating and using the
latest technologies and the smartest methodologies to give its clients the clearest understanding of the most important
people in the world: their customers. To find out more, visit www.gfk.com
All data from the 12th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted
Metropolitan Life Insurance Company, NY, NY 10166
L0914392535[exp1115][All States]
19