Ancillary & Voluntary Products
Incorporating ancillary and voluntary products can be a great way to strengthen your benefit package, without adding extra cost (i.e. 100% employee-paid). These products can also help set you apart from your competitors and give your employees another reason to stay with your company. Ancillary and voluntary products are relatively easy to implement and employees can seamlessly pay the premium with payroll deduction.
There is a vast array of voluntary products available to you. Some of the most requested options are:
Long-Term Care Insurance
Accident insurance pays employees directly if they are injured (on or off the job). Your employees can use the money they receive in any way they need, such as a mortgage payment or other monthly home expenses they can’t make due to the injury and inability to work.
Cancer coverage works a lot like accident insurance (explained above), except the payment is made to the employee upon a cancer diagnosis. Just like with accident, the employee can use the money in any way they need.
Critical Illness coverage works like accident and cancer coverage, except this coverage kicks in if your employee experiences a serious medical condition such as a heart attack or stroke.
Because accident, cancer, and critical illness are so similar, policies are available for your employees where all three coverage types are lumped into one policy for one minimal monthly premium.
Disability Income is a type of insurance that protects a portion of your employees’ income should they be unable to work for a period of time. Depending on policy specifics, the disability policy will replace a percentage of your employees’ base salary to help them or their families pay the bills.
Dental insurance covers what you would expect, but voluntary dental coverage pays the benefits directly to the employee. For example, if your employee goes to the dentist and needs a cavity filled, the voluntary dental carrier will pay the employee directly for the costs incurred.
Gap insurance works by raising the deductible on your health plan (to at least $5,000) and then the extra exposure is covered by the Gap plan. Now, by raising the deductible, your employees save on monthly premium costs and then the gap product is there to cover the extra expense in case anything catastrophic happens. Gap plans are not for every group, but can be a great option for some.
Hospital Indemnity covers your employees if they have to be admitted to a hospital. Just like the dental coverage described earlier, your employee would supply the voluntary carrier the hospital bill and your employee would receive payment directly from the carrier.
Life Insurance is a policy some would argue is the most-needed policy of all, but it’s also the one no one really wants to talk about. Life insurance protects the financial future of loved ones should you or your employees die suddenly. For example, if you’re in a car wreck and pass away, your family would receive a lump sum to help them live comfortably without your income to rely on. Life insurance is how you can support family when you’re no longer here.
Long-Term Care insurance is coverage that helps pay for the cost of long-term care services, such as bathing, dressing, or eating. Your employees would appreciate a long-term care option through your group as there are usually no medical questions if written on a group basis, instead of an individual basis. However, if your employees are healthy and could answer health questions, their premiums would probably be less if they got their own individual policy.
Vision insurance covers what you would expect, but voluntary vision coverage pays the benefits directly to the employee. For example, if your employee needs glasses, the voluntary vision carrier would send payment directly to your employee.