Group Ancillary Benefits (STD / LTD / Dental / Vision / Life) Information
Health expenses continue to rise and all signs indicate they will do so for the foreseeable future. This makes it critical to have some sort of health insurance—having none leaves individuals exposed to serious risks, both in terms of health and financial security. Unfortunately, health insurance doesn’t cover everything, meaning those with coverage can still be left on the hook for certain expenses. That’s where ancillary benefits come in.
Reach out to Active Insurance Agency LLC today to learn how ancillary benefits can help employees’ health and your bottom line.
The word “ancillary” means “support,” and that’s exactly what these benefits do. Ancillary benefits are additional health care benefits that help round out a benefits package. The “group” in the name simply means they are provided to a group of employees (as opposed to an individual).
Ancillary benefits help cover costs that traditional health plans don’t. These benefits are typically employer-sponsored, but many employers allow employees to contribute as well.
Ancillary benefits include virtually any benefit related to a person’s health that isn’t covered under a traditional health plan. Below are some of the most common ancillary benefits:
Dental Insurance: Dental insurance plans cover routine preventive dental care, such as cleanings, exams and X-rays.
Vision Insurance: Vision insurance plans are designed to provide routine preventive care, such as eye exams, eyewear and other vision services at a reduced rate.
Life Insurance: There are a couple of versions of life insurance, usually term or whole life. Coverage may be employer- or employee-paid. Often, employers offer a specified benefit (flat fee or percentage of salary) that is cost-free for employees, then offer the option for employees to purchase additional coverage.
Group Disability Insurance: This is typically seen in the forms of short-term and long-term disability plans.These coverages provide income protection for employees who lose work time due to an injury or disability.
There are a number of reasons to provide employees with ancillary benefits. For one, some basic personal care, such as teeth cleaning or eye exams, isn’t usually offered in a traditional health plan. Ignoring these health care needs can lead to serious complications for individuals and create even greater health expenses down the road. That’s why employees need dental and vision insurance.
For another, providing employees with adequate, well-rounded benefits will enable them to thrive in healthier lifestyles. This, in turn, can lead to greater performance and productivity for an organization overall. Moreover, ancillary benefits encourage preventive care, such as routine dental visits. This proactive attitude toward well-being can help prevent chronic health issues before they form and lower overall health expenses for everyone.