Your employee benefit package may not be complete without exploring additional options to secure the health and well-being of your employees. This additional coverage is known as Ancillary Benefits, and they can be part of your Employee Benefits Program.
What are Ancillary Benefits?
Ancillary Benefits are insurance and benefit plans used to complement your company’s group health insurance coverage. These plans help employees manage unexpected health care costs that medical plans might not cover. Such benefits can be employer-funded or voluntary (paid for by the employee).
Why offer Ancillary benefits?
Employees rely on the workplace for their personal insurance needs. Including the supplemental coverage as part of a “complete” benefits package can increase employee productivity and retention, as well as lowering the cost of healthcare claims. Many types of ancillary insurance coverage can offer protection not only to your employees but also their loved ones.
Ancillary benefits are reasonably priced because of the limited amount of coverage that they offer. In addition, if your business takes advantage of Section 125 of the IRS code, premiums are paid with pre-tax dollars.
Types of Ancillary Benefits
Please know that each of the following benefits can be customized to meet the specific needs of your business and employees:
There are different types of Ancillary Insurance Companies. Some, like Guardian, Principal, Standard, and Unum, work more specifically with Employer Paid benefits. Whereas companies like Aflac and Colonial specialize in Voluntary Benefits through an employer.
Discussing your company’s and employees’ needs with our Group Health Insurance Specialist can help you determine the best combination of these benefits.