Organizations can offer a range of benefits, but fundamentally, all of them fall under four main categories: medical insurance, life insurance, disability insurance, and retirement plans.
When speaking about benefits, small businesses have to face major hurdles when it comes to attracting talented workforce simply because they cannot afford to offer the same range of employee benefits as compared to larger organizations that possess significant amounts of spending power.
In this blog, we discuss the most basic (and important) types of employee benefits to help you decide which ones are best suited to incorporate into your business policies.
Medical
The most obvious one on the list. It’s what most employers offer and covers prescriptions, hospital and doctor visits, and surgeries. Minimum standards are set by the law and a portion of this premium is covered by employers.
Dental insurance is separate and emphasizes diagnostics and prevention including annual cleaning and checkups, fluoride treatments and X-rays. Other types of medical insurance include:
- Cancer Insurance:This insurance policy only pays after cancer has been detected. It’s considered a supplemental insurance with most types resulting in a large sum being paid just after the initial diagnosis.
- Hospital Insurance:Covers costs incurred during hospital visits. State and federal employees get this insurance for free whereas private employees must pay.
- Vision Insurance:Pays for ongoing vision expenses such as contact lenses and routine eye tests.
Life
Life insurance policies are contracted with insurance companies in exchange for premium payments.
A considerable sum is provided to the beneficiaries in case of insurer’s death. Another sub-type is known as “Dismemberment and Accidental Death” Insurance and pays out for events such as death or major injuries resulting in losing a finger, limb, hearing, vision, speech or suffering from paralysis or going in a coma due to an accident. It seems similar to basic life insurance but does not act as a replacement.
Disability
This insurance comes into effect if an employee is unable to work for a considerable length of time due to an injury or illness and pays a portion of his/her income. They are further divided into short-term and long-term policies.
Another type is known as “Accident Insurance” and pays for the medical as well as out-of-pocket costs incurred after an injury due to an accident. It also includes medical exams, emergency treatment, hospital stays, and other expenses.
Retirement
You must have heard of the 401(k) or 403(b). Both are retirement plans named after their tax codes.
The 401(k) can be utilized by smaller business to retain and attract employees. It allows employees to deduct a percentage of each month’s salary toward a retirement fund. Some businesses may choose to allow employee deductions up to a certain percentage.
Offering the right choice of insurances can help you attract experienced and qualified employees. Our employee benefit services in Delaware help employers to considerably save up on insurance costs. Contact us today!
