Ancillary insurance plans offer coverage for medical expenses that aren’t covered under a traditional health insurance plan. These benefits kick in when insurance doesn’t cover:
- Out-of-pocket expenses
From an employee perspective, it only makes sense to work with ancillary insurance carriers because they’re often an additional perk to attract top-tier talent to your business.
What is Ancillary Products Insurance?
Also called voluntary benefits, this form of insurance is offered through ancillary insurance providers and is paid for 100% by the employee. From an employer perspective, it doesn’t cost anything to offer this insurance and can help build stronger internal teams.
Why is Ancillary Insurance Important?
Out-of-pocket expenses are often unexpected and can cause employees to suffer from financial hardships. When you have an ancillary policy, you’re reducing your financial obligations if you need some form of medical or health care that is unexpected.
Ancillary benefits may cover up to a certain multiplier for your care which is outlined in the terms of the policy.
Employees should consider applying for any of the ancillary benefits that they can because the costs are often well worth the reduced financial risk. You may be able to choose from numerous plans:
- Vision and dental. A common plan because most vision and dental plans are significantly lacking.
- Disability. Short- and long-term disability insurance is a backup that you can’t afford to overlook since 3-in-10 workers will claim disability at some point.
- Life. If you die, how will your family be able to pay your funeral costs, utilities, mortgage and other debts? Life insurance offers a way to cover these unexpected expenses.
- Wellness benefits. Free gym memberships, meal plans and other wellness benefits may be offered through an ancillary wellness plan.
Some ancillary insurance carriers are even offering pet insurance as a perk to the younger workforce that is seeking insurance for their pets. Thousands of companies are attracting talented employees by offering these forms of insurance.
Why Employers and Employees Need to Start Thinking About Ancillary Insurance
Employers are having a difficult time attracting applicants to fill vacant positions in the workplace. The employees of today know that they have a lot of options, and chasing the highest paying position isn’t always the key factor in choosing one employer over another.
Millennials are seeking additional benefits to keep them loyal and happy in their positions.
This is where ancillary plans can mean the difference between attracting the best employee to fill a position or not.
For employees, you should consider paying for these voluntary benefits because they offer you additional benefits that are severely lacking in a traditional insurance plan. You need to weigh the pros and cons of the insurance, but it’s never a bad idea to have additional coverage for:
- Medical emergencies
- Vision and dental
Life, pet and wellness benefits may not be as important to you depending on your age.
Employers should start offering these additional benefits as soon as possible. Employees should opt into the plans that they think will offer them the best protection possible.