Aflac Study Reveals Gaps in Will-Related Document Possession in the U.S.

A recent Aflac study reveals a gap between the acknowledgment of the importance of will-related documents and the actual possession of such documents among Americans, posing potential challenges in the workplace.

The Aflac Life Insurance and Legacy Planning Study surveyed 1,000 adult employees in the U.S., highlighting a discrepancy between awareness and action regarding legal preparations. While 77% of respondents consider a last will and testament essential, only 57% have created one. Similarly, 71% find a power of attorney crucial, yet just 50% have arranged for it, and only 54% possess advance healthcare directives despite 66% recognizing their importance. Alarmingly, 38% of those with arrangements noted that relatives might struggle to locate these documents.

Workplace Implications and Challenges

The study underscores significant implications for workplaces when employees face the death of a family member. The lack of documented arrangements can greatly impact professional responsibilities. A reported 74% of employees who navigated such personal loss experienced decreased productivity, while 37% found it challenging to balance personal and work obligations.

The emotional toll was cited as the most daunting aspect by 45% of respondents, followed by financial responsibilities at 43%, and funeral arrangements at 40%. Barriers to completing estate planning tasks included process complexity, financial concerns, and discomfort with the subject.

Opportunities for Employers and Insurance Brokers

According to Scott Beeman, divisional president of Aflac Premier, employers who offer end-of-life planning resources can benefit by supporting employee well-being and helping them manage personal matters without sacrificing job performance. Aflac partners with Empathy, a tech firm, to offer legacy planning and bereavement support, demonstrating that strategic integration of these services can be a win-win for organizations and employees.

For insurance brokers, the Aflac findings highlight a timely opportunity to promote bereavement and legacy planning as essential components of employee benefits. These services not only enhance productivity amid personal losses but also serve as differentiators in the competitive benefits market. Brokers can leverage these findings to advocate for preemptive estate planning, addressing gaps in document accessibility and preparedness.

Considerations for Implementing Planning Resources

While the study findings present clear advantages, it's crucial to approach them with understanding of the study's context. The research, affiliated with a service provider, did not clarify its data collection timeline or provide a margin of error, important factors for brokers when advising clients. Still, the broader trends align with industry observations, such as LIMRA's finding that 29% of consumers acknowledge a need for life insurance yet remain uncertain about coverage specifics.