Total Rewards: Health Benefits

Total Rewards is a very important part to a company because it actually is the collective good that keeps its employees happy.  There are many types of Total Rewards, yet the most popular and one that is starting to diminish is the Health Benefits Reward.  This includes Health Insurance, Dental Insurance, Employee Life Insurance, Accidental Death / Dismemberment Insurance, Long Term Disability.  All these Benefits along with the work environment help keep the employee satisfied so they will stay with the company.  

Health Insurance is offered by the employer with many different packages, which include different premiums, deductibles, co-payments, coinsurance, exclusions, coverage limits, out-of-pocket maximums, capitations, In-Network provider, prior authorization, and explanation of benefits.  This can protect against illness, surgery, and some physical ailments. 

Dental Insurance is a dying tradition that most companies do not even practice anymore because it is very expense yet one of the most important. Dental insurance plans are usually supplement an individual health plan or are part of an employer sponsored group health plan. However, dental insurance policies are increasingly being purchased as standalone policies. There are different types of dental insurance plans that are tailored favorably to our available health plans.  

Accidental Death and Dismemberment Insurance will pay benefits in addition to any life insurance held by the client. This is called double indemnity coverage and is often available even when accidental death insurance is merely an add-on to a regular life insurance plan.  Some of the covered accidents include traffic accidents, exposure, homicide, falls, heavy equipment accidents, and drowning. Accidental deaths are the fifth leading cause of death in the U.S. as well as in Canada.  Accidental death insurance is not an investment vehicle and thus clients are paying only for sustained protection. Insurance premiums are expected to rise in time. Most policies have to be renewed periodically (with revised terms), although the client's consent with renewal is often implicitly assumed.  

Finally, Long Term Disability is a benefit that is generally one of the most important parts of a benefits package. While some companies opt to fund a short term disability or don’t even offer one at all, many more employers do offer a long term disability program funded through a third party administrator such as a disability insurer.  If an employee is hurt off the job, worker’s compensation will not cover them. When an employee cannot work for an extended period of time, a long term disability plan can help cover a portion of the employee’s salary. Long term disability usually kicks in after a short term disability policy has run out.