As a business owner, you are responsible for the welfare of everyone working for you. This is why governments have legislation for mandated employee benefits. However, you’d find that most of the relevant regulations only require minimum coverage. If your industry engages jobs with higher risks, it may not suffice. In such situations, concern for the individual should come first. Indeed, a more extensive insurance policy would cost more, but you’d be rewarded with greater employee satisfaction in time. If sustained, the latter would have a positive impact on your business.
If your company has existed for years, a performance incentive scheme might have already been set up. You’re probably making monthly contributions for employee pension too. These are fine, but there’s something lacking. The people who work for you would already want financial security. When one of their children gets sick or work accidents leave them disabled, they’ll need cash fast. An insurance plan is a financial solution that would effectively cover them in times of great need or emergencies.
Insurance comes in many forms and is usually categorised according to usage. These days, plenty of specialists in this area have online resources where anyone can learn more about the product. The web is replete with blogs that explain its basics. There are also provider websites that offers life insurance quotes and advice on claims processing, among others.
As illustrated in the example above, medical costs is a major expense. Hence, employee health insurance should be perceived as a necessity.
A health plan is an entity that offers coverage of specific health services. To enjoy this, plan members need to pay a fixed premium. There are three classifications involved:
Traditional or Indemnity Plan
This allows the policyholder to choose his own health care provider. Once you’ve paid the annual deductible, the plan would pay a percentage of medical costs (usually 80%), whilst you shoulder the remaining expense. The amount you pay would depend on the following factors:health care services allowed by your planinsurance provider’s charges for such a service
Managed Care Plan
This typically features a network of medical facilities, such as hospitals, private clinics, and diagnostic centres. It also has its own list of accredited doctors. With it, you’re expected to pay a monthly premium for medical procedures that are covered.
This last category is designed to give plan owners better control over health expenditures. This is done by combining an insurance policy with a health account. The latter can be used to pay for qualified medical expenses.
Apart from providing peace of mind, medical coverage is a means of protecting your employees’ financial future. Your people are average earners who’d suffer a blow if they went to the extent of liquidating assets just to fund treatment costs. A health plan would not only defray such a costly expense, but also earn you their lifetime gratitude.