Savvy employers are using this insurance to help workers to fill coverage gaps.
A supplemental accident benefit, like other types of supplemental insurance policy, is a type of coverage that fills the gap left behind by many types of traditional health plan. Employers are increasingly offering this coverage as an appealing way to draw talented, loyal employees.
Employers give the employee the option to pay all or some of the costs of this coverage.
Adding a supplemental accident benefit and other similar forms of “sidekick” coverage to a benefits package, is a powerful way to draw new skilled and driven employees and to enhance employee retention. After all, it rounds out the protection provided to the employee in case the unexpected should happen. Like cancer insurance and other specific supplemental policies, the coverage ensures the worker will have to pay fewer expenses out of pocket should the worst ever occur.
This type of policy differs from traditional health plans in some important ways. For instance, when a claim is made against a standard health plan, the benefits are paid directly to the party that is owed the money. Most commonly, this is a hospital, clinic, or doctor. To cover that bill, most of the expense is paid by the insurance company, though the policyholder may still need to pay deductibles, co-pays and other expenses out of pocket.
Those other expenses can be particularly challenging to pay out of pocket if the employee is unable to work due to injury or illness. It is in these areas that supplemental insurance policies can make a difference. This helps to explain their appeal in employee benefits packages.
A supplemental accident benefit covers many of the expenses that usually aren’t covered by a health plan.
For example, a critical illness or cancer insurance plan pays out cash benefits in the event of a covered illness such as cancer, heart attack or stroke. Should that unwanted event occur, the payout amount is paid directly to the policyholder. In this way, the payment can cover lost wages if they can’t work due to the injury or illness, costs associated with travel to be seen by a specialist who isn’t local, or other similar expenses.
The flexibility of payment options also explains how a supplemental accident benefit can differ from a standard health plan. Health plans don’t usually offer much – if any – choice regarding how and when an expense reimbursement occurs. On the other hand, supplemental policies will usually offer a range of payment options from which to choose. This can include receiving the benefit payment all at once or in smaller payments over time.
Choose an experienced insurance agent to help you navigate supplemental insurance for your employees.
Your local Allstate Santa Clarita agency has twenty years of experience in guiding businesses through everything from a supplemental accident benefit to Allstate Cancer insurance or critical illness coverage.
Ellison Insurance Services assists businesses with these services every day. The team, headed by Allstate agent Kimberley Ellison, can help your business with everything from choosing the right supplemental insurance plans to setting them up through payroll. This agency makes it simple for any California company – large or small – to create a comprehensive supplemental workplace benefits package.
Business owners that already have supplemental accident insurance should also remember that it’s always a good idea to shop for lower rates for their coverage – as well as for other lines of insurance such as workers’ compensation and their business owners’ policies – well before the date of renewal. The Ellison Insurance Services team is always happy to help review those types of coverage, making sure that your business has the right policies in place, at the best available price. The ideal time to shop for any type of commercial insurance is 60 to 45 days before the renewal date.