Accidents and illnesses can occur without warning, despite our best efforts to avoid them. While health insurance covers many medical expenses, it may not cover everything, especially during extended recoveries. Supplemental insurance is an option for individuals seeking more peace of mind and assured support during a crisis. While employees can find this insurance on their own, adding them as options to your benefits package can benefit your business in the long term. It not only supports your employees but also enhances productivity and retention and reduces absenteeism.
What Is Supplemental Insurance?
Supplemental insurance is an additional type of insurance that provides coverage beyond a standard health insurance plan. Some of the main benefits for your employees are financial protection from out-of-pocket costs like deductibles and copayments, flexibility in choosing plans that fit individual needs, and peace of mind knowing there's extra coverage for unexpected health issues or accidents.
There are also benefits for you as an employer. Supplemental insurance enhances your benefits packages and helps attract and retain top talent. Today, 46% of professionals are considering quitting their roles. Of course, it takes more than monetary benefits to attract and retain top employees. For the best results, supplemental insurance should work in tandem with other nonmonetary initiatives.
Enhancing Employee Financial Security
While you may offer your employees the best health care, oftentimes, employees must cover themselves. Supplemental insurance helps cover gaps in primary health insurance, providing financial support for medical expenses not covered by standard plans.
In the event of a severe health condition, supplemental insurance, such as critical illness insurance, can offer lump-sum payments, providing financial aid for recovery and rehabilitation. Additionally, supplemental insurance ensures continued income for employees during long-term medical leave, bridging the divide between short-term and long-term disability benefits.
This reduces financial stress during recovery periods, helping employees maintain economic stability while they focus on getting better. This support gives employees and their families peace of mind, knowing they have additional resources to cope with critical illnesses and accidents.
Improving Organizational Productivity
Many employers struggle with absenteeism. While you know your team best and the specific reasons that might be hindering full engagement, a common reason for absenteeism is financial stress. When employees face financial stress due to unexpected medical expenses, it can lead to increased absences as they struggle to manage their health and economic situations simultaneously. By providing supplemental insurance, you can minimize these financial stress-related absences.
This support enables employees to access necessary medical care without worrying about the costs, leading to quicker recoveries and a faster return to work. As a result, employees can remain more present and productive, contributing to your organization's overall efficiency and performance.
Reducing absenteeism not only benefits individual employees but also helps maintain smooth operations and reduces the burden on other team members who might otherwise need to cover for absent colleagues.
Additionally, offering supplemental insurance can:
Enhance employee focus and performance
Financial and health-related worries can be significant distractions for employees, impacting their ability to concentrate on tasks. Supplemental insurance alleviates these concerns by providing a safety net that covers additional medical expenses and supports income protection during illness or injury.
Employees who are less preoccupied with personal financial issues can dedicate their energy and attention to their professional responsibilities, fostering a more productive and high-performing work environment.
Strengthen employer-employee relationships
Providing these benefits demonstrates your commitment to your workforce's well-being and financial security. This commitment helps build trust and loyalty among employees, who feel valued and supported.
Additionally, supplemental insurance encourages open communication and support within the workplace. Employees are more likely to express their needs and concerns when they know you’re invested in their overall health and well-being. This open communication fosters a positive and productive work environment where employees feel comfortable and motivated to perform at their best. By creating a supportive and inclusive workplace culture, you can cultivate long-term relationships with your team, boosting retention and establishing a cohesive workforce.
Enhance corporate reputation
Providing supplemental insurance also enhances the corporate reputation of your organization. Employees are looking for companies that prioritize the well-being of their team, and word travels fast. While there are many ways to improve your organizational culture, offering comprehensive benefits, including supplemental insurance, signals that your organization cares about your team. This positive perception can improve employer branding and enhance customer loyalty and stakeholder trust. Overall, investing in supplemental insurance not only benefits employees but also strengthens your business’ standing in the market and community.
Types Of Supplemental Insurance
There are many kinds of supplemental insurance to consider. Individuals will likely have different needs and can select the right options for them and their circumstances. Continue reading to learn about the types of supplemental insurance.
- Accident insurance: Accident insurance provides benefits in case of accidental injuries. It covers medical treatments, hospital stays, and accident recovery costs, reducing the insured's financial burden and helping them recover more comfortably.
- Critical illness insurance: Critical illness insurance offers a lump-sum payment if an employee is diagnosed with a specified critical illness such as cancer, a heart attack, or stroke. The funds can be used for medical expenses, travel for treatment, or everyday living costs.
- Disability insurance: Disability insurance replaces a portion of an employee's income if they are unable to work due to injury or illness. This coverage ensures financial stability during recovery periods, helping employees manage their living expenses and maintain their standard of living while they are unable to work. Separate from short-term and long-term disability benefits, it helps offer continuous support throughout recovery.
- Hospital indemnity insurance: Hospital indemnity insurance pays a fixed amount for each day an employee spends in the hospital. This coverage helps cover costs like deductibles, copayments, and other non-covered expenses that can accumulate during a hospital stay. By providing a daily benefit, hospital indemnity insurance alleviates the financial burden of hospitalization, allowing employees to focus on getting well.
- Dental and vision insurance: Dental and vision insurance covers routine dental and vision care, which standard health plans may not fully cover. This includes benefits for exams, treatments, and corrective lenses.
- Cancer insurance: Cancer insurance often provides a lump sum to cover expenses related to cancer treatment. In most cases, primary health insurance does not cover all associated costs, so cancer insurance can be an invaluable resource for some individuals.
- Life insurance: This isn’t always considered supplemental; however, it provides financial protection for beneficiaries in the event of your death. Many options include term life, whole life, and universal.
Supplemental Insurance With GMS
Offer your team the best resources possible with GMS. Navigating supplemental insurance can be confusing. Juggling multiple vendors and price points when you have a business to run is not always possible, but you need to provide exceptional benefits to remain competitive.
Partnering with a professional employer organization (PEO) like GMS is one way to offer the best benefits without all the stress. Supplemental health insurance helps employees find health coverage that meets their specific needs, which is why GMS offers a variety of health coverage options. Contact us today to speak with one of our HR and Benefit experts.