Voluntary benefits: your secret weapon in small group sales

The triple play: better coverage, more revenue, deeper client relationships

Small group health insurance agents are constantly looking for ways to get in with new clients and stay firmly rooted with old ones. As rates increase, benefits become underutilized by employees. Small business owners lack the time and energy to spend understanding alternative options. It's up to you to fill any gaps for your clients before another agent steps in with a shiny new solution.

We have a win-win-win scenario for you: voluntary benefits. You get to offer enhanced coverage, you increase your commission income, and you become the indispensable one-stop shop for all their insurance needs.

But how exactly to position this opportunity with your small business clients?

The small business reality: gaps are everywhere

Small business owners are caught between a rock and a hard place: Employees demand better benefits, but traditional health insurance premiums keep climbing. So, they skimp on the benefits to save some cash. The employees feel unheard, they leave for another job, and the business is left spending even more money recruiting, onboarding, and training someone else.

New life insurance research shows sales have been on the downturn in the immediate past, no matter if it was group life or individual life. Group sales have dipped 8% since this time last year, meaning there are lots of opportunities to find someone who either didn’t take the life insurance policy and regrets it, or wants to get back on the peace of mind wagon after a brief soiree without coverage.

However, disability insurance has the opposing challenge (or lack thereof): total workplace disability sales are up 3% from last year, with short term in particular growing 7%.

Here's the data that matters: More than six in ten employees say their benefits packages make them more inclined to stay with their current employers. That’s six in ten employees who would love voluntary benefits—and they don’t break the bank. Many voluntary benefits are employee-funded, meaning zero additional cost to the employer while still giving them a boost in attracting and keeping talent.

Either way, you as the agent can feel safe to know that even if sales drop slightly year over year, you can easily tell your employers that offering these benefits is at no cost to them aside from the few breaths it takes to talk about them at onboarding. To boot, research shows that most employers don’t see benefit menus as a place to skimp anyway. Competitive benefits are viewed as a tool to attract and retain the best talent.

Five strategies to close more business

1) Let the data drive the discussion

Small business owners live and breathe the bottom line. When you walk in with concrete data, you're not just another salesperson, you're a strategist.

When hitting fringe benefits in your pitch, illustrate how current packages stack up against competitors. This is an easy place for small businesses to stand out.

For example, only 40% of small groups offer dental insurance, but it’s available at 93% of businesses overall. That number drops to 33% for something like hospital indemnity. This is where you offer up voluntary benefits as a solution: “Your benefits package can bring you up to speed with larger businesses and leave others in the dust if you offer dental and vision benefits. You’ll be better off than two thirds of the competition if you offer hospital indemnity to boot.”

2) Benefits = business goals

Every small business owner has priorities: reduce turnover, attract top talent, increase productivity. Your job is to actively listen to those concerns, then connect voluntary benefits directly to those objectives.

The pitch: "You mentioned that finding and keeping good employees is your biggest challenge. Employees with flexible benefits options are 32% less likely to quit. Let me show you how we can address that without increasing your benefits budget."

3) Glean what employees actually want

Help your client conduct a simple employee survey—Action can help you get it started. Consider the demographics: younger workers might prioritize mental health resources, while older employees might value critical illness coverage. Present the findings showing exactly which benefits will have the biggest impact.

Remember: 78% of workers believe it's their employer's responsibility to ensure they're mentally healthy and emotionally well. When you help employers meet this expectation, you're positioning them as a great place to work.

4) Show them the money

This is where you earn your commission. Build your case by emphasizing voluntary benefits are often 100% employee-funded. Then calculate the cost of turnover for their business and compare it to the cost.

Example: "If we implement a supplemental benefits program that's primarily employee-funded, and it helps you retain just two key employees who would otherwise leave, you could save over $100,000 in replacement costs alone."

5) Become their one-stop insurance shop

Here's the real opportunity: when you handle all their insurance needs—health, dental, vision, life, disability, accident, critical illness—you create multiple revenue streams and deepen client loyalty. Whenever your clients need something, they will go to you, not to the internet.

Instead of selling one product and moving on, offer a comprehensive benefits review. One agent for everything creates administrative simplicity. You're making a sale and building a book of business generating ongoing cross-product commissions. Mention you can help with Medicare once employees reach 65, and you have a setup for lifelong clients.

I have enough papers

The most common pushback you'll hear is about administrative burden: "I don't have time to manage more benefits and paperwork."

Here's your opportunity to shine. Modern voluntary benefits aren't the administrative nightmare business owners imagine. Many carriers now offer streamlined solutions designed specifically for busy small businesses. Some basic life insurance plans require just a single contact with the provider—no paperwork, no death certificate needed.

Even better, many carriers provide absence management services with tech tools that help businesses track and manage benefits effortlessly. And of course, they have their benefits expert (you) to guide them through everything.

Frame it this way: "I hear that concern—that's exactly why I partner with carriers who make this easy. You're not adding to your workload; you're getting tools and support that actually simplify things while adding tremendous value for your employees."

Your next steps

You probably already know your products inside and out. But come prepared with industry data, ROI talking points, and a position as the comprehensive solution.

Remember: you're not selling insurance—you're helping small businesses attract and retain the talent needed to grow. When you approach it from that angle, with voluntary benefits as a key tool in your arsenal, you'll find doors opening that were previously closed.