Ancillary Insurance

Complementing your employees Health Insurance benefits

You may have seen this term while looking for group insurance. “Ancillary Benefits” refer to benefits that are used to supplement group health insurance. These can include the three most sought-after employee benefits: dental, vision and life insurance.

Research continues to show that dental and vision plans can be effective preventive healthcare tools that may lower medical claims costs in the long run. Early symptoms of high blood pressure, diabetes and other diseases can be detected in an eye exam before showing up in a physical.

Health insurance also does not provide income protection in the event of a death. Life insurance can help employees protect their loved ones by providing a monetary benefit to cover the cost of a funeral or a debt.

Group life insurance has a high-perceived value as well of the majority of employees who had access to group life insurance took advatange of it.

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Ancillary benefits have the advantage of being affordable

Purchasing these benefits at a group level is more affordable than if purchased on an individual basis. Cost is limited for three reasons:

As group insurance products, the risk is spread through a large population, which keeps premiums reasonably priced.

If your business takes advantage of Section 125 of the IRS code, and establishes a cafeteria plan, premiums can be paid with pre-tax dollars.

The cost can either be completely covered by the employer or shared with the employees by arranging an employer-employee split.

There are two ways ancillary benefits can be funded: voluntary or employer-contributory. On employer-contributory ancillary benefits, the employer usually pays 50 to 100 percent of the premiums. On voluntary plans, the employer may contribute 0 to 49 percent of the premiums.

Through payroll deduction, employees pay whatever portion of the premiums that the employer does not cover. Then when an employee uses their benefits, a claim is submitted and benefits are paid directly to the network-contracted provider or to the member (if a network provider is not used). For life insurance claims, the beneficiary is paid directly (in the event of a death).

Benefits to Employers

Lower employer FICA contributions if your business takes advantage of IRC Section 125 so that employees can use pre-tax dollars for these benefits

The value of ancillary benefits is high among employees and would enhance the employer’s reputation among employees.

Offering ancillary benefits make your business more competitive in the employment marketplace. With them, you can compete with other employers who may already provide these value-added benefits.

Employers do not pay for voluntary ancillary benefits or can share the cost with employees to keep costs down while pleasing employees.

These employee benefit programs and plans may have associated administrative costs and are subject to legal requirements. Before establishing a cafeteria, plan or offering ancillary benefits to your employees, you should consult with your own legal and tax advisors.

Benefits to Employees

They can use pre-tax dollars to pay for ancillary benefits, thus lowering their taxable income.

The cost is affordable. Risk is spread amont a large group of people to keep the premiums reasonable.

Ancillary products respond to workers’ needs to access important benefits, such as dental insurance, vision insurance and group term life insurance, disability insurance, long term care insurance

With ancillary dental and vision benefits, workers can get preventative care, not just care when a problem develops.

They can enjoy the peace of mind and security that comes with ancillary benefits and group insurance.

We offer a wide array of ancillary insurance plans. Each line is an important aspect of a company's benefit offering. These benefits can be implemented to have the potential to add a lot of value to your overall benefits package. Along with the health insurance, we will implement an annual review of your benefits and we work with the leading carriers throughout the nation.

Our ancillary offerings include:

"We take our advantage as an independent firm seriously, striving to provide our clients with peace of mind knowing that any recommendation we make is appropriate for your company and your employees"- Jonathan

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