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Non-Negotiable Ancillary Benefits: The Importance of Disability & Life Insurance

Written by Winter-Dent | Mar 8, 2022 3:00:00 PM

Ancillary benefits are key areas of provision for employees that go beyond basic health insurance to make them feel safe and give your business a competitive edge. While you might assume you cannot afford to offer these employee perks, the truth is that in this job market, you almost can't’ afford not to offer them. Read on to learn more on the importance of these benefits and why you should consider adding them to what your business provides:

The Importance of Ancillary Benefits

Ancillary benefits, which is coverage such as disability insurance and life insurance provide value to employees by helping them ensure that all their medical needs are met. Therefore, as a business owner, you should put a great deal of consideration into whether you should offer them. Suffice it to say, the benefits by far outweigh any drawbacks.

Non-Negotiable Ancillary Benefits Your Business Should Offer Your Employees

There are several kinds of ancillary benefits to offer in your employee benefits package. These can include disability, life insurance, vision insurance, dental insurance, and HSA. Let’s consider two of the most critical benefits below:

Disability Insurance

This coverage consists of two main types of disability insurance, short-term and long-term. Some states require employers to offer this coverage, but it is not a universally required policy.

  • Short Term: This type of disability insurance usually covers an employee when they are out of work anywhere from six weeks to six months. On average, it covers around 60% of your employee’s lost income. 
  • Long Term: The long-term variety of disability insurance picks up when the short-period coverage is terminated. It can last from two years or even into retirement in some cases depending on the terms of the policy contract. On average, it covers around 60% of your employee’s lost income.

Life Insurance

This coverage ensures that the families of your employees are provided for in the event of their passing. After your employee, the policyholder dies, the policy will pay out a lump sum to the listed beneficiaries. This allows your employees' families to maintain their lifestyle even with a loss of income. 

Other Types of Coverage

It’s also a good idea to offer a Health Savings Account (HSA), dental insurance, vision insurance and more. These all protect your employees in a variety of ways and help them to maintain a level of performance. Vision and Dental are pretty basic coverages that most businesses can and do offer. If you want to stand out, you can consider offering wellness programs, pet insurance, and even accident insurance.

Ancillary Benefits Benefit Employees and Employers Alike

While you might only consider the ways that ancillary benefits help employees, it’s also worth noting that they can benefit employers as well. First, it makes you a more appealing work environment, helping you to remain competitive in this ultra cut-throat environment. It also shows that you care for your employees and their health and overall wellbeing.

A company will earn loyal employees when they work to make sure said employees are provided for and have what they need to live a healthy, happy life. It also helps you maintain a healthy working staff, ensuring that your employees come to work when scheduled and aren’t calling out because they are sick or injured. Employees work better when they are healthy and happy and good ancillary benefits help keep them in optimal shape. 

Your Next Step? Reach Out to Our Team

Contact our team of insurance professionals for a plan to meet your business’s needs and to get a custom quote. Don’t wait another day that you could be offering employees much-needed benefits and helping your business stand out among your competitors. Want to have more information like this delivered to your inbox weekly? Subscribe to our blog today!