The Importance of Bereavement Benefits in Group Insurance Programs
Bereavement benefits remain underdeveloped in U.S. group benefits programs, despite their crucial role in employee well-being, according to a recent study by Empathy.
Bereavement is an inevitable life event that has yet to be fully addressed within group benefits in the United States. Research from Empathy, a New York-based platform that focuses on bereavement and family care, has shed light on this gap, providing potential focal points for benefits brokers, insurers, and employer benefit plans. "The Grief Tax," a report by Empathy in collaboration with Censuswide, surveyed employees and employers in the U.S., Canada, and the U.K. about their perspectives on bereavement benefits.
The Demand for Bereavement Support
The study reveals a growing expectation among employees for comprehensive bereavement-related benefits. An overwhelming 95% of surveyed employees indicated the value of these offerings, while 84% of employers plan to enhance these benefits by 2026. This commitment is even more pronounced among C-suite leaders, with 91% intending to broaden such support. Ron Gura, co-founder and CEO of Empathy, likened this shift to the transformation of maternity leave benefits, suggesting that bereavement benefits are at a similar evolutionary stage.
The Grief Tax: A Hidden Burden
The research highlights the substantial burden faced by employees serving as executors or next of kin, requiring an estimated 500 hours of administrative tasks over 18 months—a period termed "The Grief Tax." Empathy supports over 45 million individuals across North America and has recently secured $162 million in Series C funding to expand its services to include caregiving and estate planning.
| Key Findings | Implications |
|---|---|
| 95% of employees value bereavement benefits | Opportunity to improve employee satisfaction |
| 84% of employers plan benefit expansions | Focus on strategic plan enhancements |
| 60% of employers see misalignment with needs | Necessity for better alignment initiatives |
The Disconnect and Opportunity
Despite the clear need, a disconnect exists between employer recognition of employee needs and the current offerings. Sixty percent of employers acknowledge partial or poor alignment with employee needs, a sentiment shared by 52% of employees. The report also identifies a disconnect at management levels, where executives are generally more optimistic about alignment than middle managers.
Leveraging Bereavement Benefits for Retention
Data from the report suggests that offering strong support for employees during bereavement fosters a sense of value, potentially improving retention and engagement. Ron Gura emphasizes this retention value, asserting the importance of bereavement benefits in retaining talent through compassionate support. Jay Kaduson, CEO of Workplace Solutions at Voya Financial, affirms this view, stressing the need for comprehensive life-event support beyond traditional life insurance.
For benefits brokers, the findings underscore the growing significance of bereavement benefits. With 80% of employers anticipating increased benefits budgets but demanding clear impact justifications, brokers should present bereavement benefits as a strategic tool for retention and employee resilience, not just a compliance measure.