When you work for a company, you often are offered a number of benefits including paid time off, health insurance and a retirement plan. Many employers contribute to the cost of retirement and health insurance. Some employers also offer a number of other benefits to employees called workplace benefits. These benefits are usually something the employee pays for.
What are they
Work benefits, also called supplemental benefits, are extra benefits that many employers offer in addition to more traditional benefits like health insurance and paid time off. Though some employers may contribute to the cost of these benefits, the premiums are typically solely the employees’ responsibility. These benefits are typically meant to protect you and your family in the event of disability or death, although some are meant to help you in retirement.
Who are they for?
Signing up for supplemental benefits can be a good decision for any employee, but they make particular sense for some people. Single parents, single wage earners and people caring for a vulnerable person all should consider supplemental benefits. Those whose jobs put them at higher risk of injury or illness and people with chronic health problems also should consider work benefits.
How do they work?
Most supplemental benefits cover a particular situation and pay out when a covered event occurs. For example, your supplemental policy may pay you a lump sum if you become disabled and can’t work for a certain period of time. If you do experience what you believe is a covered event, you must file a claim with the supplemental insurer.
There are a number of supplemental benefits offered by employees. Some of the most common include disability insurance, accident insurance, critical illness insurance, long-term care insurance and universal life insurance.
The main advantage of using workplace benefits is extra financial protection in the event that an illness or injury leaves you unable to work. An additional benefit is that by getting them through your employer, you are able to pay lower premiums than you would if you bought an individual policy.