What are Voluntary Workplace Benefits?
Small businesses today face a tough task of attracting top talent because their benefits don’t exactly match that of large companies. The benefit gap can be one big reason an employee doesn’t choose to take your offer of employment.
Sure, you have a health plan for the employees, buy what about other areas of concern of your staff. The solution is to offer MORE benefits. This can be done by offering benefits the employees can choose voluntarily. Staff selected and possibly pre-tax payroll deducted benefits can be a life saver for your staff. And, you have choices in what to offer. The advantage to the employee is these benefits are offered at group rates. Many carriers allow the plans to remain in effect even if the employee leaves your employment. A Disability Income Protection policy that is portable is a powerful benefit the staff will appreciate.
Plus, there’s more to offer! Voluntary Benefits can be a game changer for your employee retention as well. So, what can you offer?
Voluntary Benefit choices can be:
- Term Life Insurance
- Individual Short-Term Disability
- Accident Insurance
- Critical Illness Coverage
What do these plans do?
Term Life policies are pretty straight forward. The employee selects the coverage amount and the period of coverage. Term Life is best for protection for specific needs (college funding, mortgage pay off…).
Individual Short Term Disability Plans do exactly that. When an employee suffers a disabling event, this kicks in to help keep them afloat when the paychecks stop coming. Some policies also offer accidental death and dismemberment coverage as well. With benefit periods from 3 to 6 months, the employee can choose how they wish to protect themselves. As a bonus, many plans are also guaranteed renewable making Disability coverage all the more attractive.
Accident Insurance can be a huge benefit to the staff of your company. Accident plans cover accidental injury. I find most people never even consider they could be out of work due to injury. But this is the most common type of work loss to the younger employee. With accident Insurance any covered accidental injury event will be much easier to handle with funds coming in to help cover treatments and possible surgeries. This type of policy is Indemnity Coverage meaning the funds are coming to you and can be used for any expense you choose. These benefits will be paid regardless of any other coverage you may have.
Critical Illness Plans can offer relief when the unexpected illness happens. Critical Illness coverage will pay lump sum benefits on initial occurrence of the illness. There are options to have coverage for a recurrence of the illness as well. Cancer, heart disease, stroke…all of these events can be helped with a cash infusion at the beginning of your treatment.
Everyone should have the opportunity to purchase Disability Income Protection because we cannot predict when an auto accident or illness may take us out of the workforce for a period of recovery. Again, many of these plans are portable! And, the rates stay the same as if they never left the group!
As the business owner, you can choose what is the most beneficial protections for your staff. When you are thinking of how you can help your staff without breaking the bank, think Voluntary Benefits.