Most employers offer a number of traditional benefits such as health insurance and a retirement plan. More and more these days, however, businesses are supplementing those benefit offerings with a suite of workplace benefits as well. These types of benefits can help attract and keep employees and also help to improve their work-life balance.
What are they?
Workplace benefits are benefits offered in addition to the employer-offered benefits that are traditionally associated with a job. These benefits are often referred to as supplemental benefits because they supplement an employer’s benefit options. Whereas traditional benefits are often paid for at least in part by the employer, supplemental benefits are usually offered to employees only if they pay the full cost.
Who are they for?
Supplemental work benefits can be a good idea for any employee, but they can be vital for certain workers. This includes single parents, people who are the sole wage earner in a household and anyone with a physically demanding or dangerous job who could face long periods of not being able to work because of an illness or injury.
How do they work?
Supplemental benefits typically kick in after a covered event occurs, such as a serious injury or illness. Most policies pay out benefits in a lump sum up to the maximum offered, although some may pay out in installments. You typically have to make a claim and show evidence of eligibility for the claimed benefit.
Major types of work benefits
There is a wide range of supplemental benefit offerings on the market, and employers typically can pick and choose which ones they want to offer. Among the ones most commonly offered are disability insurance, accident insurance, critical illness/cancer insurance and universal life insurance.
The main advantage of supplemental benefits is the additional financial safety net they provide should you encounter a disabling injury or illness. Another advantage of getting them through your job is that even though you have to pay the cost, you pay group rates, which generally are lower than what you would pay for a similar individual policy.
There are several benefits to getting access to supplemental benefits at work. One of the biggest is the ability to pay group rates, which usually results in lower premiums than you would pay individually. Another benefit is easy access to types of insurance you might never encounter. For example, most people don’t seek out an insurance agent to buy disability insurance or accident insurance. The convenience of paying through a payroll deduction is another major benefit.