Employee benefits insurance is a type of coverage that provides coverage for employee benefits. This can include health insurance coverage for your spouse or children, government-mandated benefits such as Social Security, and even coverage for your company car or laptop.
You’ll get this type of coverage through your employer if you’re an employee. But you can also apply for employee benefits insurance on your own if you’re self-employed. If you’re an entrepreneur, you can purchase a contract rider that will provide you with the same level of coverage.
What Does Employee Benefits Insurance Cover?
Health insurance is the most common type of coverage provided through employee benefits. This is because it’s required by law for most employers to provide some level of health insurance coverage for their employees.
But some employers may choose to provide additional coverage, such as a high-deductible health plan or a health maintenance organization (HMO). You may also choose to get your health insurance through a union or professional association.
Regardless of which type of health insurance you choose, you’ll likely be covered for basic medical expenses like copayments for doctor’s visits and prescriptions, as well as major medical expenses like anesthesia and surgeries.
You may also choose to get your health insurance through an exchange, such as the healthcare.gov exchange. These types of exchanges provide government-subsidized insurance for those that qualify.
Another type of coverage that you may be eligible for is long-term care (in case of an illness or accident). This type of coverage is provided through Medicare, though there are extra costs involved.
Types of Employee Benefits Insurance
The type of coverage you have will depend on your needs and your budget. There are two types of insurance coverage: commercial and non-commercial.
Commercial coverage: If you’re in business for yourself, commercial coverage is for you. This type of coverage is ideal for contractors and employees of an individual or small business. It provides enough coverage for large medical expenses, but not for long-term care or disability.
Non-commercial coverage: If you have a larger business or work for an employer with more than five employees, non-commercial coverage is for you. This type of coverage provides full coverage for you and your dependents, including long-term care, disabilities, and more.
Pros and Cons of Employee Benefits Insurance
Depending on your needs, the pros and cons of receiving employee benefits insurance may outweigh the costs. For example:
Pros of employee benefits insurance: The coverage provided by this type of insurance is comprehensive, meaning that it covers all major expenses that may arise as a result of an accident or illness. Depending on your needs, this coverage may be cheaper than purchasing a policy on your own. The insurance can also cover your domestic partner and/or your children.
Cons of employee benefit insurance: As with any insurance policy, there’s a chance that you may never need to file a claim. And if you do, it may be more expensive than paying out of pocket.
Depending on your needs, you may find that employee benefits insurance is worth the money. Or you may decide that it’s not worth the premium. Either way, it’s important to understand the ins and outs of the coverage so that you can make an informed decision.
It’s a good idea to shop around for the best deal on employee benefits insurance. After all, you wouldn’t want to overpay for something that you don’t use.