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Are Supplemental Insurance Products Right For Your Business?

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DuckSupplemental or ancillary insurance is a product that can be offered to your employees at no cost to your company. In fact, depending on the circumstances and the amount of company contribution, these products can actually SAVE the company money due to the payroll tax advantages.   I believe that these plans deserve a closer look due to the state of the health care industry with the implementation of the Affordable Care Act – which seems to have made things less… affordable.

Many people are familiar with these products through AFLAC but there are many other providers that offer coverage. Companies with less than 10 employees can use these products to provide coverage at a more affordable cost – especially life insurance that is generally cost prohibitive with less than 10 employees. In addition to Life insurance, you can also offer short or long-term disability or a variety of other insurance products. This ability to offer more coverage options can upgrade your benefits package making your company more competitive in the marketplace. These plans are also portable and can be kept by the employee if they leave your employment. The insurance companies will also take care of the administrative hassle which is always welcomed by the small business owner.

With health care plans trending towards higher deductibles supplemental coverage can provide for a way to fill in the gap that employees may have.  What I have found to be popular with both employers and employees is to offer a fixed “allowance” each month to employees and they can use that allowance to purchase the products in the amount and type of coverage they want. The employees like the flexibility and the employer likes the ability to fix their costs at a level they want.

If you haven’t considered offering supplemental or ancillary insurance coverage it may be time to think again. Have a great week.

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Written by pacelinebiz

March 24, 2014 at 8:01 am

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