Pub. 17 2018-2019 Issue 4

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E N O . 1 , 2 0 1 9 24 new jersey auto retailer The Important, and Evolving, Role of Ancillary Employee Benefits BY BRUCE MAZZARELLI The term ancillary employee benefits is often used to describe the group of benefits offered to employees in addition to employer sponsored health insurance. These additional bene- fits typically include dental, vision, and life insurance coverage. However, in today’s employee benefits arena, the list of available ancillary products and services is much broader. Ancillary offer- ings available today include: • Dental, Life, Vision • Short and Long Term Disability • Long Term Care • Critical Care and Illness Coverage • Hospital Indemnity • Accident Coverage • Telemedicine • Financial Wellness • College Debt Repayment • Home and Auto Insurance • Identity Theft Protection • Pre-Paid Legal • Pet Insurance • Executive Benefits Ancillary benefits can play an important role in a well-rounded – and well-received – employee benefits package. Today, more than ever, employees want and expect the opportunity to “build” a customized benefits package. A strong ancillary offering can play a key role in attracting and retaining employees – increasingly viewed as a key differentiator when choosing among employers. In fact, according to MetLife’s 2018 Employee Benefits Trend Study, 73% of employees agree that having the ability to customize benefits would improve one’s loyalty to his or her employer. Furthermore, the study indicated that 83% of employees would take less pay to have a broader choice of benefits. There are a number of reputable insurance carriers offering ancillary benefits. Often, one’s medical insurance carrier can offer a strong portfolio of ancillary products and services – and an employer might even see discounts by combining lines of coverage under a single carrier. Others, such as Guardian, Principal, and Met Life, have placed considerable focus on ancillary benefits and can offer an expansive list of ancillary programs. Still others, including American Fidelity and Aflac, have built their business on what is often termed “work site” benefits – voluntary employee paid programs such as critical illness, cancer coverage, accident policies, and disability insurance. These benefits are often sold through “one-on-one” meetings with employees in the work setting. The decision of what to offer employees within this expanding list of ancillary products and services, and how to offer them, is important and often difficult. Interestingly, the ancillary benefits shown to be most desirable by certain employees are often determined by which generational workforce one belongs to. As