Understanding available employee benefits helps advisors fill gaps, study says

According to a recent MDRT study, 69.7% of U.S. workers surveyed said they will have at least one employer-provided insurance policy in 2024 other than health insurance. In addition to term life insurance and long-term disability insurance, many employers offer more specific insurance policies to employees.

“By leveraging their knowledge of employee benefits,” MDRT member Brian Heckert said, “advisors can empower their clients to make informed decisions about their financial future, ultimately helping them achieve greater financial security and stability.”

2024 employee benefits options

The Million Dollar Round Table study highlights the array of 2024 employee benefits options that Americans selected in last year’s open enrollment period. It pointed out that for financial advisors heading into their new-year planning sessions, knowledge of clients’ 2024 employee benefits protections is a critical piece of the full picture of clients’ overall financial well-being.

Broken down by individual policy type, workers responding to the 2024 employee benefits survey said they have the following coverage:

• 34.1% of respondents said they will have employer-provided short-term disability insurance this year
• 26.3% said the same for accidental death and dismemberment insurance
• 17.7% said they will have critical illness insurance
• 16% responded positively that they will have long-term care insurance

“Insurance is the bread and butter of many financial advisors, but we must know what protections clients get at work to make sure our offerings are as beneficial as possible,” said MDRT President, Greg Gagne. “At the same time, it is also advisors’ responsibility to discuss the conditional nature of employment-based insurance with clients, and how and when to add permanent coverage into the mix.”

Even though financial advisors do not typically sell health insurance, healthcare coverage is still a key component of overall financial health, the study pointed out.

An overwhelming 92.7% of Americans said that they will have health insurance this year. This includes 57.7% of Americans who will have private coverage, typically from an employer, a spouse or a partner’s employer or the Affordable Care Act marketplaces. Another 34.7% will have government-provided insurance, like Medicare or Medicaid.

Health savings accounts

One facet of health insurance that is especially important to financial advisors is health savings accounts (HSAs), tax-advantaged savings tools that are available to Americans with high deductible health insurance plans (HDHPs).

The survey showed that 43.4% of privately insured Americans said they will have an HDHP in 2024. This includes 47.6% of privately insured men and 39.3% of privately insured women, as well as 50.8% of privately insured Americans with children or adult dependents.

Retirement savings

To most Americans, the first employee benefit that comes to mind is likely retirement savings, in the form of accounts like traditional or Roth 401(k)s and similar plans. About 3 out of 4 Americans (74.9%) said they have at least one retirement savings account, including 46.7% who have an employer provided account and 37.7% who have a personal account. Men are more likely than women to have both employer-provided (51.3% of men vs. 43.6% of women) and personal accounts (46.1% of men vs. 31.8% of women).

While many financial advisors discuss retirement planning with their clients, advisors may miss an important context if they only discuss personal accounts, the survey said. Only 17.4% of Americans say they manage a personal retirement savings account with the help of a financial advisor. This includes 22.1% of men and 13.6% of women, as well as 20.9% of Americans ages 45 and older and 14.3% of Americans ages 18-44.

Notable survey findings

One key finding that was surprising to MDRT member Brian Heckert was that the offering from employers beyond health coverage was fairly broad. “While we focus on the retirement benefits side, there has been a drastic uptick in the different options available and the penetration of more diverse offerings like critical illness and employer sponsored long-term care coverage. The data underscores the importance of employers providing comprehensive benefits packages to meet the varied needs of their workforce. I also feel that this is a sign of the competitive marketplace for good employees,” he said.

Another notable finding is the significant participation in retirement savings accounts among Americans, Heckert pointed out.

However, he said, “the data also reveals a gap in professional financial advice utilization, with a sizable portion of individuals managing their retirement accounts independently. This suggests a potential opportunity for financial advisors to offer guidance and expertise to help individuals optimize their retirement savings strategies.

“Our firm offers all 401k participants the opportunity for a full financial plan at no cost to the employee and the participation for this is routinely above 40%. Those that participate feel they would not have access if it were not through the employer sponsored plan.” Heckert is the founder of, and a wealth manager at FSM Wealth.

Working with clients

So how does knowledge of these 2024 employee benefits help employee benefits advisors better understand the full picture of their clients’ overall financial well-being and help them to work better with their advisors?

All advisors should educate themselves on their clients’ offerings and complement the planning process by validating the available options in the employees’ best interest, Heckert said. This enables advisors to work with their clients more effectively and provide personalized recommendations and strategies tailored to their specific needs and goals.

For example, Heckert said that advisors can identify gaps in insurance coverage or retirement savings and offer solutions to address them. Additionally, advisors can help clients navigate complex benefit options, such as choosing between different health insurance plans or optimizing their retirement account contributions.

Exploring other benefits

The survey also pointed out that advisors should discuss other employee benefits with clients to ensure that clients are taking full advantage of the benefits available to them, especially during important life events.

For instance, the survey said, 31.1% of U.S. workers said they will be eligible for paid parental leave in 2024, and 9.3% said the same for fertility treatment assistance.

Some clients may also reap other financial benefits from their workplaces: 16.8% of U.S. workers said they will be eligible for bonuses or profit-sharing in 2024, 12.7% for student loan repayment assistance, and 7.9% for stock options.

The online survey was fielded by G&S Business Communications on behalf of MDRT. It took place on December 8, 2023, with a representative U.S. sample of 1,198 adults, ages 18+. The sample was balanced for age and gender to reflect the demographic composition of the U.S.

Ayo Mseka has more than 30 years of experience reporting on the financial services industry. She formerly served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact her at [email protected]. 

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