6 Types of Insurance to Consider for Designing an Employee Benefits Package
Top notch professionals have demonstrated superior performance or knowledge in the past in a particular field. A first rate researcher may develop valuable technology for a company. The cream of the crop sales person may almost double the production of the current sales force. Selecting the proper insurance plans for an employee benefit package is an awesome lure for recruiting top notch professionals and for employee retention. The following six insurance plans should be considered when designing an employee benefits package.
- Health Insurance: The number one item in an employee benefits package should be health insurance. While insurance premiums continue to rise, employee insurance may be the biggest drain on an employer’s budget, but is the most important benefit for recruiting and retaining employees. Due to the recent health care law, many smaller businesses are looking to offer health insurance benefits for the first time. The three main considerations for health insurance are Health Maintenance Organization or HMO, Preferred Provider Organization or PPO and company controlled self-insured programs.
- Dental Insurance: Professionals require a beautiful smile. Dental insurance assures that smile stays sparkling white. Most businesses offer a partially funded dental insurance plan, which fully covers cleanings and x-rays; however, other procedures are covered at 80 percent.
- Life Insurance: A life insurance policy may cover final expenses and provide for existing family members or benefactors upon the death of the insured. Many businesses provide a small life insurance policy for each employee at no cost. Employees are eligible for additional life insurance coverage for a monthly premium. Some companies offer small policies for family members at a reasonable rate.
- Flexible Spending Accounts: Flexible spending accounts may be set up to cover employee healthcare co-pays, deductibles and other medical expenses not covered by insurance. Each employee determines the amount to be held from his/her paycheck and deposited into the FSA each pay period. The money is deposited before taxes are withheld resulting in a tax savings for the employee.
- Disability Insurance: Employer provided disability insurance offers an employee financial peace of mind concerning the possibility of a future catastrophic event. Disability insurance may be the perfect lure to add to a benefits package for recruiting top notch professionals. Many businesses are eliminating disability insurance or passing the expense to the employee to trim benefit budget costs.
- Cancer Policy: Unfortunately cancer diagnoses are rather prevalent. A cancer policy can cover out-of-pocket expenses, provide financial resources for experimental treatment, supply funding for travel and lodging for out of town healthcare, afford home health and pay living expenses including the mortgage. A cancer policy will appeal to the professional that plans ahead and assist a company to entice the best candidates.
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