When you’re researching products to add to your organization’s benefits package, it’s easy to get caught up in the nitty-gritty and lose sight of the big picture. What you really need to know is if the product helps both your employees and your organization. Below, we’ve listed six ways supplemental insurance benefits, also known as voluntary benefits, can do just that.
Supplemental insurance is an inexpensive way to grow a financial-wellness program, recruit and retain top talent, and improve employee productivity. For your workforce, supplemental insurance can fill gaps in core healthcare plans and provide financial security.
1. Employers Pay Next to Nothing for Them
It’s up to employers to decide if they want to cover part of the monthly premium. Even when employees pay the entire premium themselves, the discounted group rates keep products affordable. It’s a gain for both parties.
2. They Improve Recruitment and Reduce Turnover
One LIMRA study has discovered that 7 in 10 employers surveyed provide supplemental benefits to improve recruitment and retainment.
That’s a good move because employees appreciate the ability to select the products that work for them, and they’re more likely to stay with an employer who gives them this option. The Society for Human Resource Management (SHRM) has found that the kind of benefit package an organization offers plays a significant role in how people decide where to work and how long to stay there.
3. They Protect Employees’ Finances
Different supplemental insurance products protect employees’ finances in different ways.
Long-term care insurance (LTC) can help protect retirement funds. Critical illness and accident can cover out-of-pocket medical costs. Disability insurance can safeguard paychecks, and life insurance protects big-ticket payments, like college funds or mortgages.
4. The Financial Security They Provide Improves Employees’ Productivity
A relaxed worker is a productive worker.
The Consumer Financial Protection Bureau (CFPB) has discovered that people accomplish more at work when they’re not distracted by financial stress. When supplemental insurance relieves people from some of their financial worries, they can focus on their tasks.
5. Setup Is Easy
Just thinking about adding a new product can trigger a stress headache. But with supplemental insurance, you don’t need to worry. Administration for supplemental insurance is simple and convenient, and employees can pay for premiums through payroll deduction.
6. They Fill Gaps in Core Benefits
Healthcare premiums are rising. As a result, more and more people are enrolling in high-deductible plans. Supplemental insurance plans are a great way to cover the gaps in those plans. This way, when covered employees sprain an ankle or deal with a serious illness, they don’t have to deal with outrageous out-of-pocket costs if they haven’t met their deductible.
Few products out there have so many gains for both employers and employees. Supplemental benefits can help you help your employees without spending a lot of money or time. Employees can protect their investments and cover gaps in medical insurance, and your organization can bring in top talent and encourage them to stay.
What supplemental plans do you recommend? Tell us in the comments.