As brokers continue to search for voluntary benefits to supplement their sales in the coming years, legal plans might just be one of them. According to Dennis Healy, vice president of group sales at ARAG, his company saw a 40% increase in RFP activity in 2011 and he expects the rise to continue. He notes that most new business is growth in the industry with new clients, while only 20% of RFPs are for competitor bids.
“Brokers are asking, ‘What can I do that’s new?’ And I’ve seen some very interesting data recently around health and productivity. … It’s the same with the stress of a legal issue. They’re unable to focus on what they’re doing every day because while sitting at a computer they can be tempted to spend hours on their family issue,” Healy says.
Released today by the company, a survey of more than 400 people with ongoing legal disputes also shows that legal plans can help reduce stress. Findings show that 87% of people with a legal plan say it reduces their stress during a circumstance when they need a lawyer.
Healy continues: “Employers are trying to attract and retain employees while health care costs are rising, they’re trying to install benefits that don’t cost them a lot of money and combine that with brokers looking for new income. It becomes a great solution … they are trying to fill a need that’s out there.”
Healy says legal plans are usually completely voluntary for the employee, meaning little cost to the employers. ARAG’s plans average at $20 per month for an employee, depending on the exact plan features.
Legal plans are a relatively new product in the voluntary industry. Hyatt Legal Plans, owned by MetLife, is the largest provider, serving around three million people.
