To leverage open enrollment season, you need to start early. Many employers will be looking for the best employee benefit options to offer their workers: disability insurance is a great product to include in any benefits package. Seize the opportunity to be the broker who provides this insurance.
Open Enrollment Is a Busy Time in Benefits Administration
Employers that offer benefits generally have an open enrollment period sometime during the fall. This is when employees can select the benefits they want for the coming year. For example, employees may switch from one health plan to another, enroll in benefits they had previously turned down, or drop benefits they had previously elected. Employers may also offer new benefits and there may be some changes to existing benefits, both in terms of costs and coverage.
It’s a busy time. According to SHRM, open enrollment usually lasts for at least two to four weeks. During this time, employers need to conduct outreach and education to ensure that everything will go smoothly.
When to Pitch Benefits to Employers
Once open enrollment begins, it’s too late to pitch new options to benefit administrators. As open enrollment usually happens in November, you need to start targeting employers during the summer.
Understanding Benefit Trends
To make your pitch effective, you need to understand what employers want out of benefits.
- Employees need a good return on investment. According to PLANSPONSOR, 25% of HR leaders say they are cutting back on employee benefits ahead of a possible recession. Economic uncertainty is forcing employers to look for the best value options. This means you need to make a strong case for why the products you’re offering are cost effective. Voluntary disability insurance benefits are a great suggestion. They’re “voluntary” because employees decide whether or not to enroll. Employers can choose to pay as much or as little of the premium as they want – employees still benefit from group discounts. Employers usually deduct the premiums from payroll.
- One size doesn’t fit all. Recently, diversity and inclusion initiatives have received a lot of attention. In a diverse workforce, benefit needs will also be diverse. Employers are looking for affordable ways to offer their workers customizable benefit packages. Once again, voluntary benefits are a great option because employers can offer a wide selection of supplementary benefit choices without having to pay for the entirety of the premiums.
- Stress is through the roof. According to the American Psychological Association, 27% of U.S. adults are so stressed they can’t function and 83% cite inflation as a significant source of stress. Benefits that help workers tackle their stress and improve their financial stability are appealing in this climate. Disability insurance can provide just that financial stability.
What You Can Offer Employers
When you talk to employers ahead of this open enrollment season, there are several voluntary and long-term disability insurance options you can pitch:
- Multi-Life Disability: Multi-life disability insurance discounts can apply to groups of three or more people at the same company.
- Guaranteed Standard Issue Disability Insurance: For groups of five or more, guaranteed standard issue disability insurance removes the need for the medical underwriting that normally comes with individual disability insurance.
- Executive Benefit Carveouts Taking Advantage of Section 162: IRS Code 162 allows employers to use tax-deductible dollars to provide disability insurance to executives. Employers who are unaware of this option may be interested to learn about this cost-effective strategy for offering benefits that supports their executive retention and recruitment strategies.
Don’t Wait to Launch Your Open Enrollment Strategy
With many employers already thinking about the benefits they want to offer next year, this is a great time to approach employers about disability insurance employee benefits. If you want to dip your toes into this exciting market but you’re unsure how to get started, contact DIS for case study assistance and free co-selling.