THE GROWING IMPORTANCE OF VOLUNTARY INSURANCEFindings from the 2014 Aflac WorkForces Report

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About the 2014 Aflac WorkForces Report

• The 2014 Aflac WorkForces Report is the fourth annual Aflac employee benefits study examining benefits trends and attitudes.

• Fielded in January 2014 by Research Now, a global online-sampling and online data-collection company.

• Responses from 5,209 American employees, 1,856 business decision-makers and 314 benefits brokers.

• Findings show the effect health care reform is having in the workplace and the growing importance of voluntary benefits to workers.

• For details on the survey methodology, visit aflac.com/aboutAWR.

Aflac herein means American Family Life Assurance Company of Columbus. Worldwide Headquarters| 1932 Wynnton Rd| Columbus, GA 31999

Trends in company-benefits offerings

Steady growth in companies offering dental, life, vision, disability and voluntary insurance.

Employers place a high priority on controlling costs

49% of employers say controlling costs is a top business objective; businesses continued to shift benefits costs in 2013:

Benefits matter to workers

Benefits impact employee retention

Don’t assume your employees are satisfied.

Workers have real financial concerns

• Only 31% are extremely or very confident in their financial future.

• 42% are not at all or not very prepared to pay out-of-pocket expenses associated with a serious illness or injury.

Many workers are not prepared financially

• 24% of employees named “personal financial issues” as their top non- work-related issue that distracts them during work.

Workers see the value of voluntary benefits

• 63% see a growing need for voluntary insurance benefits.

• When asked why the need for voluntary insurance benefits is growing today, workers say:

• Rising medical costs: 76%

• Rising medical coverage costs: 66%

• Increasing deductibles and copays: 61%

• Because employer reduced benefits and/or coverage: 37%

• 52% of those without access to voluntary insurance benefits say they would at least be somewhat likely to purchase voluntary insurance benefits if their employer offered them.

* Among those who have heard the phrase consumer-driven health care.

Voluntary insurance improves employee perceptions

Employees with voluntary benefits are more likely to say they…

Make smarter benefits decisions for your business and your employees

As health care costs continue to rise and workers take more control of their benefits decisions, voluntary insurance plans are even more relevant for your company’s overall benefits strategy. Voluntary policies:

• Pay cash benefits.

• Help employees feel better protected.

• Boost morale and satisfaction.

• Can be offered at little or no cost to your company’s bottom line.

Visit aflac.com to see how Aflac can help.

Thank you