Financial Wellness at Work: A Growing Opportunity

financial-wellnessSome interesting developments are taking shape in the employee benefits market. For the past 15 years, MetLIfe has studied employee benefit trends. This year, the survey found that employees rate life insurance an essential employee benefit, ranking seventh out of 17.

Employer’s interest in the financial security of employees is also rising, leading employers of all sizes to offer financial wellness programs. Although programs are customized for each employer, one common thread is life insurance as a foundation of financial security.

The Employer Perspective

Employers see the impact of employee financial stress on workplace productivity. Encouraging 401(k) participation used to be the beginning and the end of employer efforts to improve employee financial security. But retirement is a small part of the financial puzzle, and employees burdened with credit card or student loan debt, often can’t begin to think about retirement.

Decreased productivity isn’t the only employee financial issue that impacts employers. Retirement age employees may choose to work longer rather than retire as expected, resulting in higher health care costs for the employer. Likewise, the allure of a higher paycheck may make valuable but overextended employees more likely to jump to competitors.

The Employee Perspective

Employee interest in financial wellness spans generations. Boomers are looking for help with preparing for retirement. Younger generations are looking for advice on how to reduce debt and refinance student loans. Both age groups have concerns, either for themselves or their parents, about paying for long-term care.

Women are also prime candidates for financial wellness programs. For starters, women are less likely to have life insurance. As a group, they look at employers and plan sponsors as resources for financial information. Women are more likely to be temporarily unable to work due to a disability, most often the recipients of long-term care services. Because they live longer, they need additional financial assets later in life.

The Financial Advisor Perspective

Forward-thinking advisors can capitalize on these and other opportunities by working with employers to bring financial wellness services to the workplace. By promoting financial wellness in the workplace, the employer opens the door for life insurance, disability insurance, long-term care insurance, and other products that address the entire spectrum. 62 percent of employees see voluntary (portable) coverages as important to a benefit package. That’s good news to an employer trying to limit benefit expenses and for advisors. Voluntary settings offer more direct contact with employees, increased income opportunity and cross-selling possibilities.

Next Steps

Are you looking for ways to expand your practice, grow your income, or add to your client list? Brokers Central has expertise in life, disability, and long-term care insurance along with carrier connections to bring the best solutions to your client. Partnership is at the center of everything we do. Review the many benefits and unique services we extend to our partner brokers then let’s get started growing your business. Call us at 895-495-5000.

As the Founding President of Brokers Central, Yoel Bodek has an innate understanding of how financial products work together to solve clients’ business, financial security and wealth accumulation goals. View Yoel’s Bio. Email Yoel.