Sponsored by: Financial Security Makes Employees Happy | Arkansas Business News

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Providing health insurance for your employees is one of the most important decisions a business owner or manager can make. Not only does it give your employees peace of mind, it gives you a competitive edge in recruiting and retaining the top talent you need to succeed. However, health insurance coverage may not be sufficient. Employers can provide additional financial security by offering supplemental, life and disability insurance that complements health insurance. Incidental coverage is paid by the employer, employee, or co-payment model.

Additional Benefits — Because Unexpected Things Happen

Most Americans think they’ll never get hurt or disabled, but they can. According to Social Security Administration statistics, one in four of her 20-year-olds today will be disabled before she turns 67. Accidents, injuries, and illnesses can happen at any time, and the costs associated with unplanned hospitalizations can add up quickly.

Tom Davenport, USAable Life Senior Director of Product Management, said: Additionally, in severe circumstances, the limits of employee health insurance can be reached. An extra layer of financial protection helps employees when they need it most, and cash benefits can be used for anything so employees can recover and recover. “

Supplemental insurance – accident, critical illness, and hospital coverage – is an affordable way for employers to provide additional coverage and financial security beyond traditional health benefits. “Supplemental benefits complement health insurance by covering additional costs in the event of a covered accident, serious illness, or hospitalization,” said Davenport. This type of coverage provides employees with cash benefits for out-of-pocket medical and non-medical expenses. From copays and deductibles to travel and childcare, the choices are theirs.

More and more employers are recognizing the benefits of offering supplemental coverage such as accident insurance. This coverage is affordable, and in addition to paying benefits directly to employees, some plans may include wellness benefits for covered preventive care and medical Complement your insurance.

Why Life Insurance Matters

According to a 2021 survey by The Life Insurance and Market Research Association (LIMRA), only 52% of those surveyed reported having life insurance, down from 63% in 2011. The report also notes that 60% of Americans have not purchased life insurance. Because they think it’s too expensive. However, providing life insurance to your employees is much more affordable as they benefit from group discounts. Here are some reasons why it’s important to have life insurance:

  1. family safety. Life insurance is required if an individual is supporting a spouse, children, or elderly parents. According to LIMRA, 42% of his Americans said their family would face financial hardship within six months if a wage earner died unexpectedly.
  2. unexpected expenses. Life insurance can help offset end-of-life costs. Average funeral costs today range from $7,000 to $10,000. Property taxes and inheritance taxes are also high. Life insurance can pay for those costs and ease the burden on loved ones.
  3. business security. If an individual is self-employed or runs a family-run business, life insurance can help keep the business alive in the absence of that individual and protect against financial loss resulting from the death of an owner or key employee. Helps protect.
  4. Outstanding Debt. If an individual has accumulated large amounts of student loan debt or other large debts, life insurance benefits can pay off these bills so that survivors are not burdened with that debt.

2 types of disability insurance

Short-term disability is designed to fill gaps caused by illness or injury that keep employees out of work for a few weeks up to six months. Long-term disability insurance provides financial assistance or income protection when an employee recovers from an injury or illness that leaves her unable to work for six months or more. The amount of compensation you need depends on how much income your employees need to earn while they are unable to work. Long-term disability insurance benefits average about 60% of pre-tax income. Short-term disability benefits can begin during the long-term disability waiting period, so there are no gaps in protection. Disability insurance can be voluntarily funded by an employer or an employee.

Davenport said: Without a year’s worth of disability insurance, my family would have been in financial trouble if I hadn’t been able to work. Disability insurance payroll protection is invaluable when employees need it. “

Strategic use of profits

A study by the Institute for Human Resource Management on the strategic use of benefits found that organizations that use benefits as a recruiting and retention tool perform better overall and are more likely to recruit and retain than those that do not. It was found to report above-average effectiveness in retention.

Arkansas Blue Cross and Blue Shield When usable life For over 40 years, we’ve partnered with businesses in Arkansas to help them deliver benefits that make a difference. For more information on employer benefits, click here.

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