I recently read an article in Employee Benefit News, titled “Millennials distrupt traditional benefits for modern priorities”
The following are some excerpts and comments from that article:
The percentage of young workers who understand insurance products is well below that of older workers. As I read the article I pondered a number of potential reasons for the gap in understanding. That would be for further discussion. Perhaps more importantly let’s consider what can we do to tip the scale back in the other direction. From my perspective one–on–one counsel from people who know, is ideal. There is so much information that is so readily accessible with a few clicks and swipes. However, if you want a short cut that helps to decipher the myriad of available choices, sit down and TALK with knowledgeable professional.
The article goes on to say:
A common problem millennials have reported encountering is not understanding the benefits being offered to them and how important they might be to their future. According to MetLife’s study, 52% of millennials understand life insurance, compared to 69% of boomers, and more than one-third of millennials don’t understand their basic medical coverage. It is not uncommon to see employees click a “Waive the Benefit” without counsel or understanding as to WHY they are waiving the benefit. By the same token, the same employees that end up having a brief discussion regarding the merits of that benefit choose “YES- Elect the Benefit”. Face to face discussions are paramount for most employees to understand the relationship between Term Life and Permanent Life Insurance so they have adequate information to make a positive decision for them and their families. A decision today literally could impact the immediate family and potentially even generations to come.
Mentioned in the same article:
Carlos Hernandez, VP of strategic alliances with Acclaris, says the main thing employers need to keep in mind when offering these benefits is to just keep it simple. “Employers are trying to structure programs with more instantaneous values,” Hernandez says. “A benefit program like an HSA is a great one because it will support someone who is 20 years old and just graduated and somebody who is 60 years old and is ready to walk out the door.” Regardless if you are 20 years old or 60 years old, take the time to understand how a High Deductible health insurance plan combined with an HSA (health savings account) could be good for you. The immediate tax advantages can add additional value to a more cost effective and cost controlled Health Insurance Strategy.
Give some consideration to the following: Slow down, sit down and have a discussion regarding your employee benefit decisions.