The Power of Voluntary Benefits: Enhancing Employee Well-being and Engagement

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In collaboration with Glenn Smith, CEPA, Senior Partner at Coastal Region Benefits

A focal point of the discussion was the MassMutual Whole Life Insurance product, a standout offering that not only provides guaranteed issue and stable rates but also includes additional benefits like a long-term care component. The webinar emphasized the simplicity of the administration process, featuring streamlined enrollment systems and comprehensive educational resources for employees. These insights encouraged businesses to explore voluntary benefits, consider tailored consultations, and review current offerings to better support their workforce.

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Understanding the Evolving Landscape of Voluntary Benefits

In the ever-changing world of employee benefits, voluntary benefits have become increasingly important. These benefits often allow employers to focus their contributions on core medical plans while giving employees the flexibility to choose additional products based on their unique lifestyle and risk management needs.

A significant takeaway from our recent webinar was the emphasis on financial well-being, covering areas such as budgeting, saving, investing, and debt management. A key insight from an annual MetLife survey highlighted that many employees feel their current benefits package does not effectively reduce financial stress—a disconnect that can significantly impact productivity as financial stress becomes a persistent distraction. The webinar encouraged a shift in perspective, urging employers to move beyond merely providing benefits and actively support employees in managing their financial well-being.

While traditional benefits like health, disability, life insurance, and retirement plans form a strong foundation, gaps often remain depending on the employer’s offerings. Glenn Smith’s presentation showcased products designed to complement or fill these gaps, providing a more comprehensive support system for employees.

Introducing a Premier Worksite Benefit: MassMutual Whole Life Insurance

The webinar also introduced a premier worksite benefit—the MassMutual Whole Life Insurance product. Backed by a Fortune 100 company with over 150 years of experience, this product represents a significant upgrade from the traditional term life insurance typically provided by employers. Unlike standard term policies that only offer a basic death benefit, MassMutual’s Whole Life Insurance offers a comprehensive package that can elevate any existing benefits plan.

This product is particularly unique because it is structured as a true group whole life plan. The policy is priced based on the employee's age at enrollment and remains stable for life, unaffected by future changes in age or health. Additionally, it’s a guaranteed issue product, allowing employees to enroll without any medical exams or health-related questions, making it accessible to everyone, regardless of their health status.

The plan also offers significant advantages, such as the accumulation of cash value, the ability to borrow against the policy, and annual dividend payouts—2024’s dividend rate stands at 6.1%. This benefit, offered at a discounted group rate, allows employers to enhance their benefits package significantly, often at little to no cost, making it an attractive option for businesses looking to improve employee retention and satisfaction.

Unmatched Stability and Comprehensive Coverage

In today’s volatile financial landscape, the guaranteed 6.1% dividend offered by MassMutual’s Whole Life Insurance product in 2024 provides a reliable and stable option. With a history of paying dividends every year since 1856, MassMutual ensures that your life insurance policy increases in value annually. The dividends are used to purchase additional life insurance, allowing your death benefit to grow over time without any increase in premium. For instance, in just ten years, your death benefit could be $20,000 higher, while your cash value also appreciates—all without any change to your premium.

The policy’s flexibility extends beyond the employee, offering coverage to spouses and children on a guaranteed issue basis. Employees can start with a minimum face amount of $10,000 and increase it up to $250,000, with the ability to add coverage annually to fit their budget over time. Another key feature of this whole life plan is its ability to gain cash value that can be borrowed against or adjusted to a “reduced paid-up” option. This option allows employees to stop making premium payments while still retaining coverage for life—an invaluable benefit for those nearing retirement when budgets may become tighter.

Comprehensive and Flexible Benefits

One of the most distinctive features of MassMutual’s Whole Life Insurance product is the inclusion of a chronic care rider at no additional cost, which covers long-term care needs—a critical consideration as healthcare costs continue to rise. With 75% of the death benefit earmarked for long-term care, MassMutual provides a lump sum payment to cover expenses, giving policyholders the freedom to use the funds as they see fit. Whether it’s for long-term care facilities, hospice, or even end-of-life wishes, this benefit offers unmatched flexibility and peace of mind.

Filing a long-term care claim with MassMutual is straightforward. The benefit is triggered when an individual can no longer perform two of the six activities of daily living, such as bathing or dressing. Once this occurs, the long-term care benefit is paid out, while the remaining life insurance coverage remains in place. Additionally, your premium will be reduced by the same 75%, and it will be adjusted based on your original age when you first enrolled, providing further financial relief.

MassMutual’s whole life plan also includes valuable features like an accelerated death benefit. If diagnosed with a terminal illness, MassMutual will pay out 75% of your death benefit immediately, with the remaining 25% paid upon death. This flexibility, combined with the ability to borrow against the policy’s cash value, offers peace of mind and financial support when it’s most needed.

Effortless Administration and Seamless Integration

The administration and rollout of this product are designed to be seamless for employers. With precise enrollment systems and comprehensive educational support, (Glenn Smith via) Coastal Region Benefits handles all aspects of billing and service, ensuring minimal effort on the part of the business. The product is available to all current employees on a guaranteed issue basis, and future employees can also take advantage of this benefit during onboarding. MassMutual’s flexibility extends to the ability to continue purchasing additional coverage in the future, even if health concerns arise later on.

Employers also have the option to enhance this voluntary benefit by making a small contribution toward the coverage, further demonstrating their commitment to employee well-being. With prices as low as $4 to $6 per week, this product is not only affordable but also backed by the financial strength of a Fortune 100 company. MassMutual’s whole life insurance integrates well with existing voluntary or supplemental benefits and can be customized to meet the unique needs of your workforce, whether you offer other products like Aflac or Colonial Life.

Final Thoughts:

In today’s competitive job market, attracting and retaining top talent requires more than just offering a paycheck—it’s about providing a comprehensive benefits package that addresses the diverse needs of your workforce. Financial well-being is a critical aspect of this package, and as employers, it’s essential to ask:

How are you supporting your employees’ financial health?

With the rising costs of healthcare, education, and everyday living, employees are increasingly looking to their employers for support beyond the traditional salary and basic benefits.

Voluntary benefits, such as MassMutual Whole Life Insurance, offer a powerful tool for enhancing your benefits package. These products not only provide essential financial security but also offer long-term value through features like guaranteed issue, stable premiums, and the ability to accumulate cash value over time. By integrating voluntary benefits into your offerings, you demonstrate a commitment to your employees’ long-term financial well-being, which in turn can lead to higher levels of satisfaction, loyalty, and productivity.

Moreover, offering such comprehensive benefits can set your company apart in the marketplace, making you an employer of choice for current and prospective employees. Whether it’s helping employees prepare for unexpected life events, supporting their retirement planning, or providing peace of mind with long-term care options, voluntary benefits like MassMutual Whole Life Insurance play a vital role in meeting these needs.

Now is the time to explore how these benefits can elevate your offerings and foster a more engaged, loyal workforce. Take a proactive approach to employee financial well-being and consider how a well-rounded benefits package can enhance both your company’s culture and its bottom line.