Bringing the Real Cost of Illness to Light

Many Americans believe they are invincible to accidents and illnesses. In fact, 62% of employees think it’s not very or not at all likely they or a family member will be diagnosed with a serious illness like cancer. And more than half (55%) said they were not very or not at all likely to be diagnosed with a chronic illness, such as heart disease or diabetes, according to the 2012 Aflac WorkForces Report, a study conducted by Research Now on behalf of Aflac, in early 2012. Yet in reality, statistics show that many Americans will face costly health care needs and unexpected medical emergencies in their lifetime.

Heart disease provides a powerful example. An American Heart Association study, Heart Disease & Stroke Statistics 2012, found one in six deaths in the U.S. was caused by coronary heart disease. The average annual coronary artery disease cost per person is $75,000 per year, according to an October 2012 Milliman research report. When asked how they would pay for out-of-pocket expenses because of an unexpected illness, more than half (57%) of workers said they would have to tap into savings, 30% percent would use a credit card and 19%—nearly one out of five people—would have to withdraw funds from their 401(k) plans to cover the costs, according to the Aflac report.

Many Americans simply aren’t financially prepared for the cost of medical emergencies.

The Aflac study reinforces how critical it is for Americans to be aware of all the options available to protect themselves from financial distress related to health care costs. One cost-effective solution to address this issue is voluntary insurance.

Making voluntary insurance available to employees not only enhances benefits packages but it also helps employees with out-of-pocket expenses like a mortgage, rent, travel and lodging, child care or even groceries. Additionally, it doesn’t add benefits costs to the company.

It is important for agents to educate employers about the full scope of voluntary insurance offerings and how they can positively impact their employees’ well-being along with their business’ bottom line. By clearly communicating the advantages of voluntary insurance options as critical components of more comprehensive benefits packages, employers and agents can help workers better understand how to financially protect themselves. For agents, these efforts will help contribute to vital business growth. In addition, the Aflac study shows that employers will realize benefits through higher job satisfaction among employees who choose to enroll in voluntary benefits, as well as higher overall employee productivity.

As consultants, agents can explain the real cost of accidents and illnesses to employers as a way to highlight the need for voluntary benefits. The full range of expenses incurred can include anything from doctors’ visits, diagnostic tests, hospitalization, surgery and prescriptions; to everyday living costs like transportation, groceries and childcare. Aflac pays cash benefits to policyholders to help ease the financial burdens associated with health care costs, allowing them to focus on recovery instead of finances. Aflac also offers voluntary insurance policies for individual and group plans, including critical illness, dental, vision, short-term disability and accident insurance. These plans offer ease of enrollment with a single rate, one application and one plan design for each account.

By supporting employers and equipping them with the tools they need to better educate their employees about available voluntary insurance benefits options, agents can ultimately help increase the employer’s bottom line. With the variety of plans available, there is a plan that fits each worker’s unique needs. Most importantly, voluntary plans offer peace of mind to the policyholder, which is priceless when facing a medical emergency.