When we talk about Group Life Insurance, many times we are talking about California Supplemental Insurance. Supplemental insurance is usually VOLUNTARY, meaning the employees can either sign up, or not. There is no participation requirement and the employer does NOT have to contribute anything to it.
With California Supplemental Insurance, employers are allowing their employees to have ACCESS to products that they would not be able to purchase as individuals. Life Insurance, Cancer policies, Hospital Indemnity plans, etc. can be a HUGE benefit to employees.
Let’s take the Hospital Indemnity plan or Bridge plan for example…..the employee would pick a level of benefit for them or their family. When they have a hospital expense, the plan would pay a dollar amount (whatever level they chose) to the employee, to help offset the cost of going to the hospital. The Supplement Insurance typically has a WELLNESS benefit embedded in the plan. This means that when an employee goes in for the annual checkup, they get cash money, in most cases $50. When a female has her mammogram and female checks done, she gets $150…..now remember as of Sept of 2010, ALL PREVENTATIVE CHECKUPS AND SERVICES ARE NOW FREE. So you go in, get your annual checkup, it doesn’t cost you anything AND you get money back……that’s what I’m talkin about!!
The Supplemental Insurance that I usually pair with our Employee Benefits include a benefit that pays $2000 per admission to the hospital. So lets say your deductible is $2500 and you get admitted into the hospital…..you’re getting a check for $2000, which would help pay for most of your deductible on your Employee Health plan. This is the kind of strategy that I’m always talking about.
This is the strategy of “financing your healthcare”…..it’s a huge investment each month folks, it’s worth looking at it with “investment eyes”!!
At Brauer Insurance Services, we strategize every benefit package with employers to help them get the most BANG for their buck. Employee Health Insurance can be one of, if not the most, expensive item for an employer each month. Remember those INVESTMENT EYES!!
Steve Brauer, Brauer Insurance Services LLC, 3150 Almaden Expwy, Suite 203, San Jose, CA 95118 (408) 421-5555, (877) 421-4325