SPONSORED: Financial Security Your Employees Will Love

Providing health care coverage for employees is one of the most important decisions a business owner or manager can make. Not only does this allow you to provide peace of mind to employees, but it gives you a competitive advantage in recruiting and retaining the top talent you need to succeed. However, health care coverage may not be enough. Employers can provide an extra layer of financial security by offering supplemental life and disability insurance that supplements health coverage. Supplemental coverage can be paid for by the employer, employee, or a shared payment model.

Extra benefits — because the unexpected happens

Most Americans think being injured or disabled will never happen – but it can. Statistics from the Social Security Administration indicate that a quarter of today’s 20-year-olds will become disabled before they reach age 67.

Tom Davenport, Senior Director of Product Management at Usable Life, said: “We often underestimate how quickly expenses add up – from lost time at work and travel expenses to deductibles and quotes. -parts. In addition, a serious situation can reach the limits of the employee’s health coverage. The extra layer of financial protection is useful when employees need it most, and cash benefits can be used for anything, allowing the employee to recuperate and recuperate.

Supplemental insurance—accident, critical illness, and hospitalization benefit coverage—is an affordable way for employers to provide additional coverage and financial security that goes beyond traditional health benefits . “Additional benefits supplement health coverage by covering additional expenses in the event of a covered accident, critical illness or hospitalization,” Davenport said. This type of coverage provides employees with cash benefits to pay for medical and non-medical expenses. From copayments and deductibles to travel and childcare, the choice is theirs.

Increasingly, employers are seeing the benefits of offering additional coverage, such as accident insurance. This coverage is affordable, and in addition to paying benefits directly to employees, some plans may include a wellness benefit for covered preventative care, in addition to medical coverage.

Why life insurance is important

According to a 2021 study by the Life Insurance and Market Research Association (LIMRA), only 52% of respondents said they own life insurance, down from 63% in 2011. The report also noted that 60% of Americans do not not buy life insurance. because they think it’s too expensive. However, when you offer life insurance to your employees, they take advantage of group discounts, which makes it much more affordable. Here are some reasons why it is important to have life insurance:

1. Family security. If a person is supporting an aging spouse, children or parents, they need life insurance. According to LIMRA, 42% of Americans say their household would face financial hardship within six months if an employee were to die unexpectedly – ​​25% would face financial hardship within a month.
2. Unforeseen expenses. Life insurance can help offset end-of-life expenses. The average funeral costs today are $7,000 to $10,000. Inheritance and inheritance tax can also be costly. Life insurance can pay for these costs, easing the burden on loved ones.
3. Business security. If a person is self-employed or owns a family business, a life insurance policy can help keep the business alive once that person is gone – helping to protect against the economic loss that could result from death. owner or key employee.
4. Unpaid debts. If a person has accumulated large student loan debt or other large debts, a life insurance benefit can pay off those bills so that their survivors do not have to deal with that debt.

Two types of disability insurance

Short-term disability is designed to fill gaps caused by an illness or injury that prevents an employee from working for several weeks up to six months. Long-term disability insurance provides financial support or income replacement if recovery from injury or illness prevents the employee from working for more than six months. The amount of coverage required depends on the amount of income that needs to be replaced while the employee cannot work. Long-term disability benefits represent, on average, about 60% of a person’s pre-tax income. Short-term disability benefits can kick in during the long-term disability waiting period, so there is no gap in protection. Disability insurance can be financed by the employer or by the employee on a voluntary basis.

Davenport said: “When I was diagnosed with a rare disease that caused serious illness, Usable Life was there for me with short term and long term disability insurance. Without disability insurance for the year I was unable to work, my family would have been financially overwhelmed. Disability insurance paycheck protection is invaluable when employees need it. »

The strategic use of profits

A Society for Human Resource Management survey of the strategic use of benefits found that organizations that use benefits as a tool for recruiting and retaining talent reported better overall business performance and greater efficiency than average. average in recruitment and retention compared to organizations that did not.

Arkansas Blue Cross and Blue Shield and Useful life have partnered for over 40 years to help Arkansas businesses deliver benefits that make a difference. Click here to learn more about employer benefits.