In addition to health insurance, many employers are interested in providing additional benefits to their employees. Health insurance is not a be-all, end-all solution for the insured. There are still plenty of out of pocket expenses and areas of someone’s life that aren’t covered. So your job as an employer’s agent doesn’t stop with health insurance. Now it’s time to make sure they have the ancillary products they need.
There are a few types of coverage that many employers offer their employees and others that are growing in popularity. This isn’t an exhaustive list of ancillary products, but it is a good place to start when thinking about offering added insurance to employers.
The most common types of ancillary insurance
Ancillary products include coverage options that employers offer to their employees in addition to health insurance. Ancillary products fill the gaps in their normal coverage and provide some additional benefits to employees. The most common types of ancillary insurance are the ones that provide the most benefit to the highest number of employees.
Dental: One of the most common types of ancillary benefits is dental insurance. Everyone has teeth in need of being taken care of. Expenses and procedures covered by dental benefits vary by plan.
Vision: 75% percent of adults in the U.S. need some kind of vision correction. Offering vision insurance allows employees to have coverage for the expenses associated with vision correction: optometry visit, frames and lenses, eye surgery, and more.
Life: Life insurance pays a fixed amount of money upon the death of the insured. Providing some kind of life insurance helps employees feel safer knowing that their families will be provided for in the event of their death.
Other popular types of coverage offered
Dental, vision, and life are the most common types of ancillary insurance, but there are a lot of other products out there. Here are a few worth noting:
Disability: While most people never expect to become disabled during their career, the truth of the matter is that the average worker has a 30% chance of becoming disabled at some point during their career. Offering short- and long-term disability insurance helps employees prepare for unexpected illness or injury. It can also help cover benefits for expectant mothers.
Hearing: Hearing insurance is not as popular as dental and vision, but is still offered by a fairly large number of employers. Hearing insurance is particularly beneficial to older employees who are more at risk for hearing loss.
Critical Illness and Accident: Health insurance can only go so far. Having additional coverage for critical illnesses and/or accidents prepares people for the high costs associated with critical illnesses, like heart attacks and cancer, as well as injuries and long hospital stays from accidents.
FSA/HSA: Flexible Spending Accounts and Health Savings Accounts both allow employees who already have health insurance to set aside money specifically for out-of-pocket medical expenses, like prescriptions and copays. These accounts are particularly helpful for people with ongoing medical conditions.
Ancillary products growing in popularity
While there are no real surprises when it comes to insurance, there are a few ancillary products that are newer than others and quickly gaining popularity with employers.
Wellness program: Wellness programs are a great option to help employees stay healthy at work. These plans can include things like gym memberships, flexible work hours for physical and mental health, or healthy meal plans.
Pet insurance: This one may seem new and unusual, but more than 60% of households in the U.S. have pets, so it comes as no surprise that more and more people are wanting pet insurance to help cover the costs of pet medication and vet visits. While it’s not commonplace yet, some big businesses are jumping on the trend, including Chipotle, T-Mobile, and Wells Fargo.
Selling ancillary products to employers
Ancillary products are a great way to enhance your clients’ benefits and retain valued customers. You have already done the hard part by selling initial healthcare coverage. Your next step is to take advantage of the relationship you’ve built with these employers and figure out what else you can do for them. Employers want what’s best for their employees and want to know you have their best interest at heart, too. Offering ancillary products to your clients is easy as long as you know how to solve their problems.
If you want more information on selling ancillary products to employers download our guide here. Agent Link is here to help you provide the best service to your clients. Ready to sell more ancillary products? Our team can help. Let’s talk!