What other types of insurance can be offered?
Disability and life insurance products provide the best benefit for the dollars spent. Because they provide protection against lost wages, long- and short-term disability insurance plans are popular voluntary benefits. Buying disability insurance coupled with life insurance is more cost effective than purchasing coverage separately. Recently, there has been a renewed interest in permanent life insurance such as universal life. During these uncertain economic times, the security of life insurance makes it a highly sought benefit.
Another voluntary benefit that has become increasingly popular is ‘gap’ insurance. As health insurance premiums continue to increase, many employers are moving toward high-deductible plans in an effort to lower costs. This often requires employees to pay the difference between what their health insurance covers and what the services cost. Gap insurance offers a solution to help protect employees against increasing out-of-pocket expenses. Gap insurance pays lump-sum benefits for medical expenses resulting from inpatient hospitalization, outpatient services, diagnostic testing and rehabilitation services. For example, an employee who needs outpatient surgery may be responsible for a $1,000 deductible before the health insurance pays for any services. With gap insurance, the employee would receive a lump-sum payment for outpatient services and could use it to help satisfy the deductible. Gap insurance can be tailored to fit the needs of the employee’s out-of-pocket expenses.
How can a company go about offering personal insurance?
Introducing personal insurance options to employees can be as simple as partnering with a trusted insurance agency that offers value to your employees and has a good reputation. Employers should promote the opportunity and allot time for interested employees to meet one-on-one with a specialist to review their personal insurance needs and objectives. From this point on, the employer becomes the conduit, as the premium is paid entirely by the employee. There is no administrative paperwork or human resources concern for the employer. Should any employee decide to enroll, he or she owns the personal insurance coverage directly. The coverage is portable and would follow the employee if he or she leaves the employer. It is important to note that the coverage is a contract between the employee and insurance company and the claims are administered directly by the insurance company.
Ron Smuch is a sales executive for JRG Advisors, the management company for ChamberChoice. Reach him at (412) 456-7017 or [email protected].
