In addition to health insurance, many businesses offer a suite of workplace benefits that provide employees coverage for accidents, disabilities, death and other situations against which they would want to protect themselves and their families.
What are they?
Workplace benefits, also called voluntary benefits, are a group of benefits that many employers offer to their employees. These benefits often are meant to help supplement other more common benefits such as retirement accounts and health insurance. Unlike health insurance and retirement benefits, of which employers often pay part or all of cost, employees typically have to pay the full cost of voluntary benefits.
Who are they for?
Work benefits can be beneficial for any employee, but they are particularly important for people who could lose their income if they become injured or sick. For example, people who do physical labor such as construction work tend to benefit from these voluntary benefits.
How do they work?
Voluntary benefits tend to cover specific things, so they only kick in if you need them. For example, if you get into an accident and become disabled, your policy would kick in and pay you the promised benefits.
Different types of coverage
There is a variety of voluntary employer benefits, but these few are the most common. Accident insurance pays you a lump sum if you are injured in an accident and can’t work. Disability insurance will pay a portion of your salary if you can’t work for an extended period of time. Critical illness insurance pays you a lump sum if you get cancer or some other serious illness covered by the policy. Universal life insurance provides a payout if you die and also may provide a cash value you can borrow against. Long-term care insurance helps to pay for nursing home care after you retire.
The major benefit of work insurance products is that they fill in gaps from other coverage and provide you income in times when it may be needed.