Disability And Life Insurance Most Popular Voluntary Benefits

Workers of all ages are more likely to take advantage of the disability and life insurance coverage offered by their employers than other types of voluntary benefits, according to a survey by Aon Consulting. The survey also found, however, that older and younger workers vary in their preferences for other types of voluntary benefits.

In a nationwide survey of employers, 45% of respondents reported that baby boomer workers (ages 45–60) purchase disability insurance, and 37% said Generation X employees (ages 25–40) also choose this option. The survey also showed that baby boomers and Generation Xers value life insurance coverage, making it the second most popular benefit for both groups.

Differences between the generations emerge, however, when it comes to other types of voluntary benefits, the survey showed. Long-term care insurance ranked third in importance for baby boomers, while home/auto/liability insurance ranked third for Generation Xers.

"Obviously, there are generation-neutral issues, which are represented in the popularity of disability coverage and life insurance," said Garry Sullivan, senior vice president with Aon Consulting. "At the same time, an increasing number of Baby Boomers have begun caring for their parents, which has prompted many of these workers to purchase long-term care insurance as a voluntary benefit for themselves. Similarly, many Generation Xers are buying their first homes, making homeowners insurance a popular voluntary benefit choice for this group."