According to LIMRA, employers may be underestimating younger employees' value of insurance coverage. Two in three employers believe a major medical plan is less important to employees under age 40 and less than a quarter believes that life insurance is truly valuable to their younger workers.

But research has found younger workers are more engaged in learning about various benefits than in the past and most employees — both young and old — value benefits like medical insurance and dental insurance. LIMRA says this disconnect will likely challenge worksite marketers to get plan sponsors with a younger work force to expand their benefit offerings.

LIMRA also found expansion of voluntary benefits offerings geographically. Traditionally, voluntary benefits were more likely to be offered in the South, with Northeast employers considered to be the toughest sells. But differences between regions have diminished compared with previous studies. Greater employer awareness of voluntary worksite programs and strong marketing efforts played important roles in building employer participation in the previously less-welcoming areas.

LIMRA found some signs suggesting that the short-term outlook for voluntary benefits has dampened slightly during the recession. But there are also reasons to be optimistic:

• Participation rates of voluntary products have held relatively steady over the past four years.
• More than 4 in 10 businesses are considering adding a new voluntary benefit within the next two years.
• Employers who currently sponsor voluntary benefits are very satisfied with their programs.
• Half of employers not offering (but aware of) voluntary benefits are receptive to purchasing voluntary products.

“A great opportunity has emerged with employers who don’t currently offer voluntary benefits. They now display greater awareness of the benefits and more likelihood of purchasing a worksite product than in the past,” noted Neyer. “Unfortunately, our research shows that the industry is targeting these employers less frequently. Companies should consider adjustments to their strategies, product features, producer incentives, etc. to better reach and educate these employers, and capitalize on this warming market.”