Employers Can Increase Worker Satisfaction by Offering Voluntary Life Insurance

by | 4 minute read

Although just over a quar­ter of employed Amer­i­cans (27%) have vol­un­tary group life insur­ance, 68% of work­ers who say they don't because their employ­er doesn't offer it would be some­what or very like­ly to pur­chase it if offered at their com­pa­ny.

That's accord­ing to a sur­vey con­duct­ed online by The Har­ris Poll on behalf of OneAm­er­i­ca of over 2,000 U.S. adults 18 years or old­er, among whom over 1,000 are employed full- or part-time. The sur­vey illus­trat­ed why this foun­da­tion­al employ­ee ben­e­fit is desired: to pro­tect them­selves and their loved ones from future finan­cial hard­ship.

Jim McGov­ern, senior vice pres­i­dent of employ­ee ben­e­fits at OneAm­er­i­ca says, "For most employ­ees, the work­place is the only oppor­tu­ni­ty they have to pur­chase life insur­ance."

When asked the rea­sons why they have vol­un­tary group life insur­ance through their employ­er, 60% of employ­ees who have it say it's to pro­tect family/loved ones from future finan­cial hard­ship; 44% say peace of mind; 40% to pay off debts and final expens­es in the event of their pass­ing; 27% to replace a spouse/partner's income in the event of their pass­ing; and 26% to leave an inher­i­tance for chil­dren or grand­chil­dren.

Vol­un­tary life insur­ance is option­al life insur­ance pro­vid­ed by an employ­er that an employ­ee pays for should they choose to have it.

Accord­ing to Audi­enceS­CAN, 72.6% of Life Insur­ance Pol­i­cy Buy­ers have a Win­dows OS com­put­er that they use for per­son­al uses. In the past month, 62.8% have researched a prod­uct they were con­sid­er­ing for pur­chase using a search engine. The most pop­u­lar search engine used among this audi­ence is Google, which is uti­lized by 87.6% of this group.

The OneAmerica/The Har­ris Poll sur­vey pro­vid­ed oppor­tu­ni­ties for car­ri­ers to address:

  • Among employed Amer­i­cans, sig­nif­i­cant­ly more men (31%) than women (23%) say they have vol­un­tary group life insur­ance through their employ­er.
  • Only 30% of those with vol­un­tary group life insur­ance through their employ­er report­ed they have more than $100,000 in life insur­ance cov­er­age. A larg­er pro­por­tion of men (33%) than women (24%) report they have over $100,000 in cov­er­age. The second-most pop­u­lar is between $51,000 and $100,000 in cov­er­age, with 28 per­cent of employ­ees who have cov­er­age cit­ing that amount.
  • Of the 73% of employed Amer­i­cans who report­ed they did not have vol­un­tary group life insur­ance through work, the lead­ing rea­son all age groups didn't have cov­er­age was not that they had oth­er obligations/expenses (13%), thought it was unaf­ford­able (11%) or that they didn't see the val­ue of it (11%), but that their employ­ers don't offer the ben­e­fit (42%). This was espe­cial­ly true for adults between the ages of 35 and 54, with 48% cit­ing their employ­ers not offer­ing group life insur­ance as the rea­son for lack of cov­er­age. Ten per­cent of those who don't have vol­un­tary life insur­ance through work say it's because they are healthy and don't need it.

Life insur­ance is one of the most impor­tant types of insur­ance cov­er­age avail­able to the finan­cial well­ness of mid­dle Amer­i­ca, McGov­ern added. "Com­pa­nies who offer vol­un­tary group life insur­ance keep their own ben­e­fits costs low and give their employ­ees a valu­able, lower-cost life insur­ance option than the employ­ees turn to in the indi­vid­ual insur­ance mar­ket­place."

Sixty-eight per­cent of employ­ees who don't have vol­un­tary group life because their work doesn't offer it are "very like­ly" or "some­what like­ly" to pur­chase vol­un­tary group life insur­ance if they did offer it.

Spon­sored search results led 52.8% of Life Insur­ance Pol­i­cy Buy­ers to take action last year, accord­ing to Audi­enceS­CAN. This audi­ence is also 13% more like­ly than oth­er adults to take action after receiv­ing email adver­tise­ments. Insur­ance com­pa­nies can reach this audi­ence through inter­net ban­ner ads, which influ­enced 43.3% of these shop­pers to take action last year. This audi­ence is 72% more like­ly than oth­er adults to be on the look­out for financial/retirement plan­ning ser­vices. Insur­ance sell­ers can sell ad space on their web­site to com­pa­nies such as these who tar­get the same cus­tomer set.

Audi­enceS­CAN data is avail­able for your appli­ca­tions and dash­boards through the Sales­Fu­el API. Media com­pa­nies and agen­cies can access Audi­enceS­CAN data through the Audi­enceS­CAN Reports in AdMall.

Rachel Cagle

Rachel Cagle

Rachel is a Research Ana­lyst, spe­cial­iz­ing in audi­ence intel­li­gence, at Sales­Fu­el. She also helps to main­tain the major accounts and co-op intel­li­gence data­bas­es. As the hold­er of a Bach­e­lors degree in Eng­lish from The Ohio State Uni­ver­si­ty, Rachel helps the rest of the Sales­Fu­el team with their writ­ing needs.