Ancillary insurance benefits, often called supplemental or voluntary insurance, offer additional coverage that complements primary insurance policies. These benefits can help bridge the gap between primary insurance payouts and the actual costs of a specific event or circumstance. By providing extra financial support, ancillary benefits can help alleviate the financial burden and stress often accompanying these situations.
Additional Workplace Benefits
- It may make your organization more competitive in a tight job market.
- It can provide peace of mind to employees that they are covered for different scenarios.
- It could reduce the overall cost of your group health insurance policy if enough people sign up for the additional benefits.
Types of Ancillary Benefits
If your organization is looking to offer ancillary benefits to supplement a group health insurance plan, there are many options. Some of the most popular ancillary benefits are:
- Group Voluntary Supplemental Life Insurance
You may offer group life insurance to your employees, but sometimes that might not be enough coverage for their needs. - Dental, Vision, and Hearing Plans
These plans cover routine exams, treatments, and oral, auditory, and eye care procedures. These policies often include coverage for preventive care, such as cleanings and eye exams, as well as more extensive treatments like dental fillings, crowns, and prescription eyewear. - Group Accident Insurance
Accident insurance offers financial protection in the event of an accidental injury. This type of policy provides a cash benefit to help cover expenses such as medical treatments, rehabilitation, and lost wages, which may not be fully covered by primary health insurance. - Short or Long-Term Disability Insurance
Offering a short-term or long-term disability program can provide prospective and current workers with another form of financial stability. An employee may be offered a higher wage elsewhere, but are they offered protection if that paycheck stops due to pregnancy, illness, or other disability? How will they pay the mortgage or other bills? Employers offering a disability plan can provide peace of mind to their employees and gain an advantage over those that don’t.
Employer-Contributory vs. Voluntary Ancillary Benefits
Some companies pick up some or even all the cost of ancillary coverage. This is known as an employer-contributory ancillary benefit—the employer pays 50% to 100% of the premium.
But other companies require employees to pay all or most of the cost of ancillary benefits, which is known as a voluntary ancillary benefit. In this case, the employer contributes zero to 40%. This can still be a good deal for workers, though, as purchasing this type of insurance through an employer lets them buy into a group insurance plan, which is almost always cheaper than purchasing coverage as an individual.
If an employee is responsible for part or all of the premium associated with ancillary benefits, the money typically will come out of their paycheck. The money usually is taken pre-tax, which offers another saving to the employee.
The Value of Ancillary Insurance Benefits
Ancillary insurance benefits provide an extra layer of financial protection by supplementing primary insurance policies. It can help reduce out-of-pocket expenses and ease the financial burden often accompanying unexpected events or circumstances.
“Ancillary benefits can greatly help employees and do not have to cost the employer any additional money. More and more employers are offering these benefits to employees. We often hear stories about how the ancillary coverage helped a person or family in a time of need,” shares Jeff Novak, President of Advanced Insurance Designs Inc.
AIDI is Happy to Help with Ancillary Benefits
Please call us at 330-753-8700 to speak to one of our experienced group benefits specialists. We are happy to visit or host your company at our Akron or Wadsworth location for a customized presentation of our offerings.
