Supplemental Benefits
The Top 3 Reasons Employers Offer Supplemental Insurance Plans
1. To recruit and retain employees
2. To complement non-traditional benefit programs
3. They’re easy to set up!
You can offer voluntary benefits to your employees at no direct cost to you. And, contrary to popular belief, you don’t need to be a big company to offer them — some plans require an employer to have a minimum of just two to five employees to qualify and others have no minimum requirement. Here’s all you need to know about a voluntary benefits plan and what it can do for your employees and your business.
Sometimes called supplemental insurance or employee-paid benefits, voluntary benefits are offered by the employer through the workplace where employees can choose to buy them in addition to the core employee benefits they may get as part of a benefits package.
Payment options are typically flexible. To suit their budget, companies can choose whether voluntary employee benefits are:
- Fully employee-funded
- Part-funded by both employee and employer
Health
Vision insurance
Regular eye exams help maintain healthy vision and are the first line of defense in detecting more serious eye conditions, such as glaucoma, high blood pressure and diabetes. Vision insurance typically helps pay for eye exams, glasses and contact lenses. They may also offer discounts on treatments such as laser eye surgery or eyecare accessories.
Dental insurance
Dental insurance can provide benefits for both routine and more expensive dental procedures that are not covered by most health insurance plans. They typically include cleaning, fillings, sealants, tooth removal, crowns and dentures – and may also provide benefits for regular dental appointments.
Accident insurance
Accident insurance plans can help offset the unexpected medical expenses that may result from a covered accidental injury. Typically, they help cover some of the expenses for initial care, surgery, transportation and lodging, and follow-up care.
Critical Illness insurance
Critical illness insurance can complement major medical coverage by providing a lump-sum benefit for an employee diagnosed with a covered critical illness, such as heart attack, stroke, coronary artery bypass surgery, end-stage renal failure or major organ transplant – among others. Benefits are typically paid directly to the employee, so they can be used where they’re most needed.
Hospital indemnity insurance
Hospital confinement indemnity insurance provides a lump-sum benefit to help with out-of-pocket costs related to a hospital stay. This may include outpatient surgery, diagnostic tests, doctor’s appointments and emergency room trips.
Wealth/Lifestyle
Disability insurance
Disability insurance replaces a percentage of an employee’s income if they become disabled as a result of a covered accident or sickness, to help them continue to make ends meet while they’re out of work.
Legal
Legal typically gives employees access to qualified attorneys at a reduced cost. Coverage usually applies to the most common personal legal matters including family, vehicle, real estate, civil lawsuits and wills.
Security
Life insurance
Life insurance pays out a lump sum to help provide financial protection for an employee’s family members in the event of the employee’s death. Coverage can be updated to reflect changes in life such as getting married, buying a home or having a child. Most plans offer spouse and child coverage.
Identity theft protection
Identify theft protection does not cover any financial loss as the result of identity theft. Instead, it may include monitoring public records and alerting the employee to any fraudulent use of their personal details, including attempted loans and credit applications. It also covers the cost of repairing the person’s credit history.