The environment for hiring and retaining top-notch employees remains competitive. One strategy for combating high turnover rates is offering a competitive package of employee benefits that goes beyond health care coverage and a retirement plan. This is where the right fringe benefits can really pay off.
One type of fringe benefit that many employers overlook is insurance. Offering certain types of policies to your staff members may strengthen their loyalty to your organization by improving their own peace of mind.
3 coverage types to consider
There are a wide variety of insurance policies you could present to employees as a fringe benefit. But here are three of the more commonly used varieties:
1. Disability insurance. Fear of losing one’s ability to work weighs on many employees — particularly in industries or occupations where illness or injuries are common. When triggered, a disability policy disburses periodic payments while the disabled insured is unable to work. Coverage can be either short-term or long-term, and many employers offer both types.
2. Long-term care (LTC) insurance. More and more employees are grappling with concerns about soaring nursing home and assisted living costs in light of lengthening life expectancies. LTC policies help pay for the cost of long-term nursing care or assistance with activities of daily living, such as eating and bathing. Policy specifics vary, but most LTC insurance covers care provided in the home, an assisted living facility or a nursing home.
3. Life insurance. Most people understand that life insurance provides some income for their families should they die unexpectedly. But that doesn’t mean every employee has life insurance or is adequately covered. Many employers offer group term life insurance policies, which provide a benefit to beneficiaries if a covered individual dies during the covered period.
Carefully chosen policy
Most employers help employees with their immediate well-being through health care benefits and with their retirement savings through a 401(k) or similar plan. But your staff members may have other concerns that you might address with a carefully chosen insurance policy offered as a fringe benefit. We can help you pick the right coverage and take full advantage of the tax and employment benefits of this strategy.