To create a more competitive employee benefits package, employers should strongly consider offering a selection of valuable ancillary benefits. Ancillary benefits provide additional coverages that may not be included in your current health plan. This can include dental, vision, disability, and other important benefits. Read on to learn more about the five types of ancillary benefits you might offer to your employees.
KSA Insurance helps businesses in South Carolina and across the southeastern United States find affordable, comprehensive insurance policies to add to their employee benefits packages. Request a quote today.
What are Ancillary Benefits?
Ancillary benefits are a type of supplementary health coverage to help cover expenses not covered by your current health plan. These benefits provide additional value to employees by helping to ensure that all of their medical needs are met.
Depending on the specific policies purchased, ancillary benefits can cover expenses related to dental care, vision care, ambulance rides, disabilities, and more.
Ancillary benefits are typically not paid for entirely by employers. Instead, they are usually either provided on a voluntary or employer-contributory basis.
Voluntary benefits require employees to pay 51% to 100% of the premiums if they choose to take advantage of the benefits. Employer-contributory benefits require employers to pay 50% to 100% of the premiums, and the remaining costs are deducted from your employees’ paychecks.
Why Offer Ancillary Benefits?
Ancillary benefits help employers build competitive employee benefits packages that boost office morale, attract high-quality talent, and improve employee satisfaction.
These benefits may not be required, but they offer a variety of valuable advantages to employees, including:
- Peace of mind. Ancillary benefits provide employees with invaluable peace of mind by ensuring that all of their medical needs are taken care of.
- Tax benefits. Employees may use a portion of their pre-tax income to pay for ancillary benefits.
- Reduced costs. With ancillary benefits, the risk is spread out to all of your employees. This can help lower premiums and make ancillary benefits more affordable for employees.
- More extensive coverage. Ancillary benefits may include policies like dental insurance, vision insurance, and disability insurance, all of which can help improve your employees’ quality of life.
Ancillary benefits provide significant value to employees and help them avoid costly medical expenses due to gaps in their health plans. By providing these supplemental benefits, employers can offer competitive employee benefits packages that attract and retain top-level talent.
5 Types of Ancillary Benefits Business Should Offer to Employees
If you’re considering adding ancillary benefits to your employee benefits package, review these five popular benefits that can be packaged with your group health insurance plan:
Group Life Insurance
Group life insurance helps employees provide their families with financial security in the event of their passing. Once the policyholder dies, these policies pay out a lump sum of money to beneficiaries that they can use to maintain their quality of life and prepare for the future.
Optometry visits, glasses, eye surgeries, and other services can be quite costly and aren’t typically covered by standard health plans. Vision insurance helps employees cover expenses when they need to correct their vision.
Dental insurance is one of the most common types of ancillary benefits available. Dental care is an absolute necessity that isn’t covered by health insurance, and by providing this additional benefit, you can help your employees mitigate the costs associated with common dental procedures.
Becoming disabled due to injury or illness can require employees to miss work and incur significant medical expenses. Short-term and long-term disability insurance help employees prepare for this unfortunate possibility.
Health Savings Account
Health Savings Accounts (HSAs) allow employees to save money for out-of-pocket medical expenses that aren’t covered by their health plans. Both employers and employees can make contributions to these tax-advantaged accounts to prepare for future medical costs.
Other Types of Ancillary Benefits to Consider
While the benefits listed above are the most common and in-demand ancillary benefits for employees, there are a few others that you may consider to make your employee benefits package more attractive.
These benefits include:
- Accidental Death & Dismemberment Insurance
- Hearing Insurance
- Critical Illness & Accident Insurance
- Pet Insurance
- Wellness Programs
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We hope you consider these five types of ancillary benefits you might offer to your employees. Ancillary benefits provide invaluable coverages to employees and help employers create more competitive benefits packages.
At KSA Insurance, we work with most major insurance carriers to help clients find affordable, comprehensive health insurance policies that meet their needs and provide invaluable peace of mind.
Contact us today to get a quote and learn more about ancillary benefits for employers.