![I’m [Fill In the Blank] Years Old – What Supplemental Insurance Do I Actually Need?](https://ewcstatic.thehartford.com/thehartford/the_hartford/pubimgs/H/higcom-image-hub-marquee-supplemental-insurance-by-age.jpg?v=2024-04-26_203727)
Supplemental benefits are voluntary, but valuable. As employees progress through life, their lifestyles and needs evolve – and ideally so should their benefit plans. Supplemental benefits can help them adjust coverage to fit their life stage and family health history. Unfortunately, many employees don't give voluntary plans enough attention.
“During annual enrollment, people spend most, if not all, their time focusing on medical, dental and vision plans," says Matt Brown, director of consumer marketing for Group Benefits at The Hartford. “By the time they get to supplemental benefits, many find they are hard to understand and may not spend enough time learning how these benefits can possibly support them. Workers won’t choose what they don’t understand. They will most likely not enroll if they can’t see themselves in the benefit, which is causing an underutilization of the services, benefits and programs that may be available to them.”
According to Samantha Kassaw, that's a shame. Having worked in corporate human resources (HR) and benefits management for more than 10 years, she says that voluntary plans are often more affordable through an employer, offering a good value to employees. Currently working as an HR manager involved in employee benefit support at a cash management solutions provider, she often answers questions to help employees select appropriate benefits and guides them as they navigate how and when to file claims. Her advice to employees: "Spend your money where it counts. Don't enroll in the cheapest per paycheck plan. Look at what it covers. Otherwise, your co-pay could be just as much as your paycheck deduction for just one visit.”
Recommended Supplemental Benefits by Age
Open enrollment is a pivotal time to make sure you’re getting the benefits that meet your needs based on your life circumstances. Yvette Lee, SHRM-SCP, an HR Knowledge Advisor at the Society for Human Resources Management (SHRM), advises employees to ask specific questions related to their life stage during informational meetings or of their benefits contact person.
“Employers can communicate as much as possible about their packages, but if the employees don't look for themselves as well, then they may not get what they're looking for. That's where asking questions comes in," Lee says. This is why SHRM suggests that, prior to enrollment, every employee asks whether there are any new or expanded voluntary benefits that they can evaluate based on their needs.2
Next, we’ll break down the most pressing and popular supplemental coverage – beyond medical and dental – options by decade for employees to consider.
Like many employees in their 20s, you're likely enrolling in an employer-provided benefits plan for the first time or may have only enrolled a few times. You may think that these benefits are not for you, but it’s important to take the time and ask for extra support and education if needed. Prior to making your selections, take your lifestyle into account. Factor in your personal risk level and keep in mind what you're trying to protect. Think about:
- Your travel schedule. How often are you gone and how far do you go?
- How physically active you are.
- The amount of nights you spend out with friends.
- Your financial situation. Do you have a large amount of student loan debt you’re trying to pay down? Do you have savings put aside for emergencies? Remember that co-pays, high deductibles and other out-of-pocket health and medical expenses can be devastating without supplemental coverage.
Top 3 Supplemental Insurance Plans for Employees in Their 20s:
Accident insurance, also known as accidental injury benefits, helps protect you against unexpected financial strain due to injury or illness related to an accident. Depending on the plan, accidental injury benefits can cover 80+ types of accidental injuries and related expenses. This is often one of the most affordable plans and offers high amounts of protection, including:
- Emergency, hospital and treatment care, ranging from an ambulance ride to ER visits to diagnostic tests
- Specified injuries like dislocations, fractures and surgeries such as pins and skin grafts
- Catastrophic events such as accidental death, dismemberment, coma and paralysis
Hospital indemnity insurance, also known as hospital cash benefits, can help you pay your deductibles, co-pays or other living expenses for each day in the hospital for a covered reason. These expenses can range from behavioral health and substance support benefits to family care coverage, such as travel and lodging. Cash benefits like these can help fill any gaps left by most high-deductible health plans (HDHPs).
Short-term disability insurance, also known as short-term income protection benefits, protects a portion of your income if you're sick or injured and, therefore, unable to work beyond your amount of paid sick days – especially if you don't have savings to fall back on. For those who might be starting families, this type of insurance can also replace a portion of your paycheck when you take Family Medical Leave for parental leave.
Other voluntary coverage options to consider in your 20s:
- Dental insurance
- Seguro de vida
- Vision insurance
During your 30s, you're likely navigating a range of life events. From getting married and starting a family to purchasing a home and establishing roots, you may take on several new types of expenses during this decade of life. This includes dependent care, increasing your saving plans and other changes to your financial situation. Below are three other types of voluntary plans you may want to consider at this stage.
Top 3 Supplemental Plans for Employees in Their 30s:
Accidental injury benefits can be especially helpful with small children as they protect you against unexpected financial strain due to injury or illness related to an accident for you, your spouse and your children. Accidental injury benefits are also something to consider if you may take on riskier behavior, like fixing up your home yourself or remaining active to similar levels in your 20s. Depending on the plan, accidental injury benefits can cover 80+ types of accidental injuries and related expenses.
Life insurance offers you and your family peace of mind that if you pass away unexpectedly, your family won't unduly struggle. Newly married couples are often encouraged to get Life insurance, especially if they'll soon start their families. Kassaw explains that employers typically offer affordable Life insurance rates to employees: “More people should take advantage of that and they should always make sure to add their beneficiaries."
Short-term income protection benefits are often seen as a must for employees in their 30s, especially if you want to have children. This type of coverage can replace a portion of your income during parental leave. Even if you don't plan to have children, short-term income protection benefits safeguard your lifestyle and financial plan. It also helps protect your paycheck should you need to take time off work for a covered injury or illness.
Other voluntary coverage options to consider in your 30s:
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Accidental injury benefits
-
Critical illness insurance, also known as critical illness benefits
-
Cancer insurance
- Dental insurance
-
Hospital cash benefits
- Vision insurance
For those who have children, they may be starting to come into their own, doing more activities, playing sports and even learning to drive. This can increase household expenses during a time when your children's college education also nears, making it essential to have adequate coverage for unexpected medical expenses. Even if you do not have children, your 40s is an important time to evaluate your own family medical history and your lifestyle to possibly consider changes to your benefits selection.
“As employees make coverage selections, they should keep in mind that it's not just their age, but also the types of activities they and their families take part in, their engagement level and their family history that may add risk," says Tarie Summers, director of supplemental health product for Group Benefits at The Hartford. Carefully consider those variables while you select your voluntary benefits, including your family medical history if you haven't yet factored that in or if it's been a while since you've checked it. This knowledge can help inform your benefits selections.
Top 3 Supplemental Insurance Plans for Employees in Their 40s
Critical illness benefits can become more valuable as you progress through life, especially if your family has a history of critical illness. These plans may offer financial protection to you and your dependents if you (or another covered family member) get diagnosed with a severe illness that's likely to affect your ability to work and make an income. Designed to help ease financial burdens, like paying rent or a mortgage, paying for unexpected medical expenses or pursuing experimental treatment, CI funds become available immediately upon diagnosis.
Cancer insurance is a similar coverage that may be offered by your employer. It offers you financial security whether you have high health deductibles, a family history of cancer, limited savings or a combination of those factors. These plans help pay for out-of-pocket costs specifically related to a cancer diagnosis and treatment, including annual preventative screening for early detection, related travel expenses and experimental treatment options.
Life insurance can be important in this stage of life when the loss of a parent and/or spouse could ruin your family's financial picture. So, if you didn't prioritize this type of coverage in your 30s, now is the time to do so. Most life insurance plans deliver a flat dollar amount or multiples of your salary to beneficiaries. Some options also include services such as estate planning, will preparation, funeral planning, travel assistance and even counseling.
Accidental death and dismemberment insurance, also known as accidental loss of life and severe injury benefits, applies to accidents wherever and whenever they happen – not just at work. Depending on the policy, this coverage may also protect your dependents. This benefit contributes a lump sum towards covered, unforeseen accident-related expenses, specifically when they are fatal or result in loss of limb or function. They can be applied to loss of life, speech, hearing, sight, movement and limb (hand, foot, thumb and index finger). Summers calls accidental loss of life and severe injury benefits the hidden gem in a benefits portfolio, noting, “If you have access via an employer plan, you can get significant amounts of coverage to protect you and your family for very affordable premiums.”
Other voluntary coverage options to consider in your 40s:
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Accidental injury benefits
- Dental insurance
-
Hospital cash benefits
-
Long-term income protection benefits
-
Short-term income protection benefits
- Vision insurance
During this stage of life, you're more likely to go through health changes and are hopefully prioritizing preventative care. If you had children, they're likely now driving and even attending college. This development may make you feel like an empty nester and cause a shift in your lifestyle, so keep any of those changes in mind while evaluating supplemental coverage. Depending on when you had children, you may even begin to enjoy time with your grandchildren. Perhaps you're also taking retirement readiness more seriously with a strong desire to help protect your finances while preparing for that stage.
Top 3 Supplemental Plans for Employees in Their 50s:
Critical illness benefits remain integral during this decade of your life when you may be more likely to experience a life-changing chronic health issue. This supplemental coverage kicks in if you get diagnosed with a severe illness that can negatively affect your ability to work and make an income. Critical illness benefits can help you continue to pay your rent or mortgage and unexpected medical expenses such as experimental treatments, major organ transplants, stroke treatment and more.
Cancer insurance is a similar coverage that may be offered by your employer. It helps cover your out-of-pocket expenses related to a cancer diagnosis and its treatment. These can include annual preventative screening for early detection as well as treatment-related costs such as travel expenses and experimental treatment options. This is often considered essential coverage for people in their 50s considering chances of a cancer diagnosis jump every year after you turn 50.3
Hospital indemnity insurance can help you pay your deductibles, co-pays or other living expenses for each day in the hospital for a covered reason. These expenses can range from behavioral health and substance support benefits to family care coverage, such as travel and lodging. Cash benefits like these can help fill any gaps left by most high-deductible health plans (HDHPs).
Long-term income protection benefits are like short-term income protection benefits but, as their name suggests, they help to replace your income should a disability keep you from work for a longer period of time. They help you continue to cover your expenses by providing up to 67% of your income and waiving premiums.
Other voluntary coverage options to consider in your 50s and beyond:
-
Accidental injury benefits
-
Accidental loss of life and severe injury benefits
- Dental insurance
- Seguro de vida
-
Short-term income protection benefits
- Vision insurance
“When employers provide supplemental benefits like these and help employees understand which to choose based on their life stage, they help their employees build the best overall coverage," says Laura Marzi, marketing and strategy lead for Group Benefits at The Hartford. “And with so many people moving on to new roles, this is the biggest moment employers have to not only welcome people, but also help them understand their benefits. It's also a good way to show employees the value they get from their employer beyond salary."
Open Enrollment Trends To Improve Employee Education
If the value of supplemental benefits is clear, why do employees sometimes struggle to select them?
“Over the last couple of years, there seem to be some efforts to make the enrollment process a bit less overwhelming and easier to understand," says Lee of SHRM. “Employers are explaining coverage as much as possible and as simply as possible. Many aim to distribute information around benefit options at least one month – or even six weeks – prior to open enrollment."
Lee notes the rising use of comparison tools (either comparison charts created in-house or supplier-provided tools) is a welcome development. She’s also noticed more employers holding both in-person and virtual meetings to explain the benefits package, what employees can expect during open enrollment and how they'll engage in the process.
“After these meetings they provide opportunities for individuals to ask questions either via a designated email address or by posting office hours with benefits specialists," says Lee. Some employers, she says, have even created a streamlined enrollment process using online tools with AI that can walk employees through the various components of open enrollment. This creates an interactive, guided journey to help them select appropriate benefits.
“Employers should also provide enrollment deadline information in multiple ways and remind employees at various times via emails, newsletters and intranets. I've even seen some employers add deadline reminders to paystubs," Lee says.
Open Enrollment as a Retention Opportunity
“Employers have a responsibility to make sure people have fair and equitable access to their benefits, especially supplemental plans that fit their situation. A one-size-fits-all approach just doesn't work for today's employees," says Marzi, who believes the growing focus on enrollment education is a step in the right direction.
Lee agrees, adding that this is a chance for employers to demonstrate that they care about their employees.
“This part of the employee experience is key to retention," she says. “Employees will easily disengage and look elsewhere when they feel that their employer doesn't care, so employers can use open enrollment as an opportunity."
1 Supplemental Health products (Accident, Critical Illness and Hospital Indemnity, etc) are independent and do not coordinate with any other health coverage.
2 10 Questions for Employees Choosing a Health Plan, Stephen Miller, CEBS, SHRM.com, September 26, 2016
3 Age and Cancer Risk, National Cancer Institute, March 5, 2021
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