The State of Voluntary Benefits - Prudential

SEVENTH ANNUAL
STUDY OF EMPLOYEE BENEFITS: TODAY & BEYOND
THE STATE OF VOLUNTARY BENEFITS
PRUDENTIAL GROUP INSURANCE
All statistics and findings in this presentation are from Prudential’s Seventh Annual Study of Employee Benefits: Today & Beyond.
The Prudential Insurance Company of America (Prudential), 751 Broad Street, Newark, NJ
The Prudential 0235352-00001-00
Insurance Company of America
0218694
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Methodology
• Online Surveys Conducted in July 2012
• 1000 Plan sponsors
• 1011 Plan participants
• 603 Brokers / consultants

The State of Group
Voluntary Benefits
Voluntary coverages remain popular,
but there is room for growth.
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Brokers are very optimistic about the future
of voluntary benefits
Brokers say they are expecting the demand for voluntary benefits to increase
2012
2011
2010
39 %
44 %
52 %
Brokers believe that the state of the economy will lead to an increase in participation
of voluntary benefits
2012
2011
2010
30 %
34 %
44 %
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Brokers are very optimistic about the future
of voluntary benefits
Brokers also
see the adoption
rate of various
voluntary products
to increase with
their clients
Critical Illness
insurance
Long-Term Care
insurance
Accident insurance
Long Term Disability
insurance
Short Term Disability
insurance
41 %
32 %
31 %
30 %
28 %
Dental insurance
Life insurance
Vision insurance
AD&D insurance
27 %
25 %
21 %
17 %
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Increase Stay the same Decrease

Employees have access to voluntary benefits
88 % 12 %
Access to at least
1 voluntary benefit
No access to any
voluntary benefits
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Employees see the value of voluntary benefits
and are more interested in having access to them
Voluntary benefits increase the value of company’s benefits program
Agree
63%
Disagree
27%
Employees said they are interested in receiving more voluntary benefits
through their employer
2012
34%
2011
24%
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Carrier name is growing in importance
Brokers
Employers
Employees
Up from 78% in 2011
Up from 59% in 2011
Up from 51% in 2011
62 %
66 %
88 %
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Participation in voluntary products has grown,
but gaps remain
Most popular voluntary benefits offered and participation—employee perspective
Dental insurance
65 %
Life insurance
61 %
Vision insurance
Disability insurance
50 %
53 %
AD&D Insurance
38 %
Long-Term Care insurance
Accident insurance
20 %
22 %
Critical Illness insurance
12 %
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Participation in voluntary products has grown,
but gaps remain
Most popular voluntary benefits offered and participation—employer perspective
Medical insurance
Dental insurance
Life insurance
Short Term Disability insurance
Vision insurance
Long Term Disability insurance
AD&D Insurance
4 % 13 %
14 % 17 %
16 % 21 %
18 % 21 %
21 %
Of employers only
offer Long Term
Disability, Accident,
and Critical Illness
as voluntary
products
Long-Term Care insurance
Accident insurance
Critical Illness insurance
21 %
21 %
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Cost, convenience, and competitiveness are
the top three advantages for employers.
Advantages of
offering voluntary
benefits
67 %
59 %
52 %
36 %
4 %
Lower cost of some benefits
Convenient (pay via payroll deductions
Maintain competitiveness of benefits program with little or no cost
Guaranteed issue
No advantages
40 %
Of employers
strongly agree that
offering voluntary
benefits has had
an impact on their
employees’
satisfaction with
their benefits
program
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Employees cite cost and guaranteed issue
as the top major advantages
Lower cost of some benefits
52 %
Can enroll without medical exam
or evidence of insurability
52 %
Convenient (pay through
payroll deduction)
48 %
Access to wider range
of benefits
47 %
Employer endorsement
43 %
Better service because of
employer influence
39 % Don’t know
Major advantage Minor advantage Not an advantage
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Employees see disadvantages should they lose their
voluntary benefits
1 in 3
Employees said that losing their voluntary
benefits would be disruptive and expensive
Employees who said this were more likely to
be over the age of 50
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Sharpening the Focus on Benefits Strategy
Sharpening the Focus on Benefits Strategy
Health Care Reform: The Waiting Is Over
Wellness Programs Gain Attention
The State of Group Voluntary Benefits
Tapping the Potential of Technology
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RESEARCH TOOLS AND RESOURCES

Research Tools and Resources – Coming Soon
Benchmarking Tool
eResource Center

QUESTIONS

Group Basic, Optional, and Dependent Life Term Insurance coverages, Group Accidental Death & Dismemberment, Business Travel Accident, and Optional
Accidental Death & Dismemberment Insurance coverages, and Group Disability Insurance coverages are issued by The Prudential Insurance Company of
America, 751 Broad Street, Newark, NJ 07102. This presentation is intended to be a summary of benefits and does not include all policy provisions,
exclusions, and limitations. A Booklet-Certificate, with complete information, including limitations and exclusions, will be provided. If there is a discrepancy
between this document and the Booklet-Certificate issued by Prudential, the terms of the Booklet-Certificate will govern. Coverage is issued under Contract
Series 83500.
This policy provides ACCIDENT insurance only. It does NOT provide basic hospital, basic medical, or major medical insurance as defined by the New York
State Insurance Department. IMPORTANT NOTICE - THIS POLICY DOES NOT PROVIDE COVERAGE FOR SICKNESS.
This policy provides disability income insurance only. It does NOT provide basic hospital, basic medical, or major medical insurance as defined by the New
York State Insurance Department.
North Carolina Residents: THIS IS NOT A MEDICARE SUPPLEMENT PLAN. If you are eligible for Medicare, review the Guide to Health Insurance
for People with Medicare, which is available from the company.
© 2012 Prudential Financial, Inc. and its related entities
Prudential, the Prudential logo, the Rock symbol, and Bring Your Challenges are service marks of Prudential Financial, Inc., and its related entities, registered in
many jurisdictions worldwide.
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