In an effort to better serve its customers, Sun Life Financial Inc.
(SLF - Analyst Report
), has broadened its employee benefits product portfolio.
Sun Life has announced the introduction of a couple of voluntary accident insurance plans – The Essential plan and The Preferred plan. Voluntary Accident Insurance coverage is an optional coverage that provides the insured with insurance protection in case of accident. With these plans, the employers will have a broader choice to offer an appropriate plan to their employees.
Sun Life has designed these twin plans to cater to two different sets of customers. While the Essential Plan is mainly targeted at younger workers, the other plan – The Preferred plan is mainly meant for employees with active lifestyles and families with dependent children.
Sun Life's Essential plan has a simple design and will be serving employees with very limited or no savings. This group of employees which are generally referred as employees living paycheck to paycheck, consist of roughly 76% of Americans according to a recent survey by bankrate.com.
Some of the features which are expected to make The Essential plan a popular choice amongst customers, are its pre-determined limits or maximums on how much money can be reimbursed; benefits payable multiple times with a cap of maximum amount per accident; no annual or lifetime maximums; premiums starting at approximately $5 a month; and equal benefit amounts for employees, spouses and dependent children.
On the other hand, Sun Life's Preferred plan provides a benefit schedule to the employers in order that they are able to comfortably meet the need of their employees. Some of the features of the plan are a flexible benefit schedule; a broad list of covered benefits, ancillary dental care and coverage for accidental death and dismemberment up to $250,000.
This initiative by Sun Life is in sync with its long-term strategy of achieving leadership position in group insurance and voluntary benefits in the United States. In July 2013, the employee benefits group expanded its suite of voluntary benefits with the launch of its first accident product that helps to protect workers against the out-of-pocket costs associated with a variety of covered accidents.
Other than Sun Life, players offering voluntary accident insurance plan are Chubb Corp.
(CB - Analyst Report
), ACE Limited
and The Hartford Financial Services Group, Inc.
(HIG - Analyst Report
) among others.