The most common (and often most essential) type of benefits employers can offer is medical coverage. The costs of health insurance, doctors and hospital visits, dental work, vision care, and prescriptions are rapidly increasing and employees are finding it more and more difficult to deal with.
Unexpected medical expenses can cripple uninsured employees in an instant and that is why most talented employees have been cultured to expect basic medical coverage.
These savings accounts will cover eligible expenses like:
· Copays and prescriptions
· Eyeglasses and contacts
· First aid kits
· Daycare expenses
Another common employee benefit is life insurance or accidental death and dismemberment insurance. If one of your employees pass away, life insurance benefits will provide payments to the employee’s family to cover funeral costs and ongoing living expenses. If you’ve been involved with this process then you understand the incredible financial burden this can be on a family.
Accidental death and dismemberment insurance, or AD&D, provides a lump sum payment if death or dismemberment of an employee is the direct result of an accident. If the employee has both insurance benefits (life and AD&D) and they die due to an accident, both coverages will be paid to the families or beneficiaries.
Employers can offer short-term and/or long-term disability insurance to their employees. If an insured employee is injured or has a lengthy illness, the benefit pays them during the period of time they are unable to work.
Short-term disability pays a portion of an employee’s salary if they become temporarily sick or are unable to work. For example: If an employee is out with a hernia, they might receive short-term disability payments.
In the event of more permanent illness or injury preventing an insured employee from performing their duties, that employee would receive long-term disability payments.
The most common type of retirement benefits is the 401(k) plan. This allows employees to deduct a certain percentage of each paycheck to put towards retirement savings. Some businesses choose to match the employee’s deduction or up to a certain percentage.