The financial livelihoods of employers depend on their employees. As a result, it is in the best interest of employers to play stronger roles in helping employees close gaps in protection.

According to the 2011 report, 59% of employees have experienced a personal issue that has affected their ability to get their work done. Of these, 40% experienced a health problem. Of those who have experienced a personal issue of any kind, 69% said it decreased their ability to concentrate at work, 52% said it decreased their productivity, and 46% said it kept them from arriving at work on time, working a full day, or even causing them to miss work entirely.

The solution? The survey found that 49% of employees said that having the right insurance coverage would help them cope with personal issues better while on the job.

Employee Concerns

The country's ongoing economic struggles have left a large segment of the U.S. workforce teetering on the brink of financial disaster. For many, an unexpected illness or accident would be devastating to their already fragile financial situations.

According to the report, 90% of employees said that financial considerations would be the first thing on their minds if they or a family member became seriously ill. Forty percent said they are concerned with the coverage their insurance provides, and 34% wonder how a serious illness would affect their ability to pay for monthly expenses.

Fifty-one percent said they are not prepared to pay out-of-pocket expenses that are not covered by major medical/health insurance related to an unexpected accident or illness. Forty-four percent said they would have to borrow money from family or friends, tap retirement savings, or use a credit card to pay such expenses. Thirty-one percent said they have no confidence in their ability to cope with the financial impact of disability/injury, death or other unexpected events. In fact, 31% have less than $500 in savings for emergency expenses. Nineteen percent said they would have no idea how they would cover the costs.

"About half of the workers we surveyed said they're already struggling with financial stress," said Audrey Tillman, executive vice president of Corporate Services at Aflac. "It shows how close to the edge many people are and how an unexpected accident or illness could make things even more challenging financially."

The Benefits of Voluntary Benefits

Voluntary insurance policies, such as short-term and long-term disability and critical illness, help individuals pay bills that major medical doesn't pay, thus providing financial safety nets to help protect income and savings in the event of a personal disaster. Often, these plans are offered to employees at no direct cost to their employers.

The survey found that 57% of employees currently enrolled in voluntary insurance benefit programs reported being extremely/very satisfied with their benefit packages, compared with 41% in companies that do not offer voluntary insurance benefits.

Sixty-six percent said that, if their employers did not provide the type and level of health insurance they needed, they would be willing to apply for additional insurance products to ensure adequate coverage.

Employer Misconceptions about Voluntary Benefits

Unfortunately, while there are several misconceptions about voluntary benefit plans among employees, there are also some misconceptions among employers. For example, while most voluntary insurance benefit plans have no direct cost to employers, only 44% of employers believe this to be true. One in four HR benefits decision-makers believes that employers pay all or most of the premiums for voluntary insurance plans, when, in fact, such plans are typically paid for entirely by employees.

In addition, some employers choose not to offer voluntary benefits, under the assumption that employees are not interested in applying for them. However, the Aflac survey found that 59% of employees say they would be interested in applying for some form of voluntary insurance if given the opportunity.

The Role of the Broker and Agent

"Businesses have a responsibility to educate employees about the risks of being unprepared for the unexpected and should offer workplace benefits which meet that need," said Aflac's Tillman. "And workers need to take better control of their futures by realizing that financial well being is tied to their health."

However, only 40% of employees feel extremely well or well informed about the benefits offered by their employers. In the absence of this information, employees often turn to less than reliable sources of information, such as friends, colleagues, or family members. Forty-one percent of workers agree they would be less likely to leave their jobs if they were well-informed about their benefits.

Finally, forty-nine percent of workers agree that they would be more informed about benefits if they were able to sit with a consultant or broker during enrollment.

In sum, as basic health insurance becomes more expensive, and as benefits are reduced, employers can help employees close the gap by offering voluntary benefits plans. It is here that brokers and agents who offer such plans can play an important role in educating both employers and employees to the value of such plans.

For more information, go to: www.aflac.com