5 Supplemental Products That Are Perfect for Small Businesses

Where would a business be without its employees? Recent major world events have inspired employees to reevaluate important aspects of their lives, such as their relationship to work and the value it brings them. In the last year, 70% of U.S. workers have considered a major career change.¹ Employees are prioritizing flexibility; pay equality; diversity, equity and inclusion (DEI)¹; purpose; and job growth.² Employers must now find ways to navigate their employees' expectations and tap into opportunities that create a positive work culture.

When employees feel cared for, they are more engaged at work and are less likely to explore new career opportunities, experience burnout, or have distrust in their leadership.³ Research has shown a decline in employees' perceptions of their organization caring about their overall well-being, with only about one in four employees saying that they "strongly agree" that their organization cares.³ An employer that invests in their employees' well-being is also making an investment in their business.

There are many ways to support an employee's well-being, and workplace benefits can be one of them. Research shows that employees are more inclined to stay when they are offered a variety of benefits.⁴ Plus, supplemental benefits can help protect an employee's financial well-being, which can impact their physical and emotional health, productivity and retention.⁵ A recent PwC survey found that "one in four full-time employees is working more jobs than in previous years to make ends meet, and 56% are stressed about their finances."⁵

These types of benefits can also be a valuable tool for recruiting and retaining talent, as employee turnover is costly. Recent research shows that "employee turnover costs companies an average of $57,150 (e.g., cost to rehire, lost productivity) overall."⁶ With small businesses, the stakes are even higher because the budget to recruit and retain top talent does not compare to large companies. Over a quarter of small U.S. organizations have reported increased resignation rates.⁷ Smaller employers need to be strategic with limited resources to attract and retain the right talent.

With the current competitive talent landscape, supplemental products can be a boon to a small business' benefits strategy. Moreover, costs are minimal when employers administer an employee-paid program. These robust additional benefit options are a win for employees because they provide access to group rates and convenient payroll deduction, with eligibility being unaffected by pre-existing medical conditions in some cases. Below are five supplemental products that can enhance the benefits packages for small businesses:

1) Critical Illness Insurance

1.9M people in the U.S. will be diagnosed with cancer this year.⁸
800K adults have a heart attack every year in the U.S.⁹
About 795K people experience a new or recurrent stroke each year.¹⁰

If an employee experiences a catastrophic health emergency such as a heart attack, stroke, or cancer diagnosis, their traditional health insurance plan may not fully cover the costs. Critical Illness Insurance provides benefits when a covered person is diagnosed with an eligible illness or condition.

2) Disability Insurance

Research indicates that a top financial concern for adults is being able to support themselves if they become disabled.¹¹ When an employee becomes sick or injured and cannot work, their income may be eliminated or temporarily reduced. Disability Insurance protects an employee's ability to pay their bills even if they can't work. It offers a monthly cash benefit that can be spent as the employee sees fit. This type of insurance is for everyone, no matter their profession, salary, age or other demographics.

3) Accident Insurance

There are 55.4 million non-fatal, preventable injuries each year.¹² Accidents will happen and the need for extra protection while an injured person recuperates is important. Accident Insurance pays cash benefits when a covered accidental injury occurs. This could be a concussion, fracture, dislocation, burn, or laceration. It supplements an employee's major medical benefits with additional coverage. Employees can use the cash benefits to help pay for treatment costs, deductibles, household expenses, or anything else they wish.

4) Hospital Indemnity Insurance

More than 33 million people in the U.S. will be admitted to a hospital this year.¹³ Hospital Indemnity Insurance pays cash benefits for covered expenses related to a hospital stay due to an illness, injury or surgical procedure. This type of supplemental insurance pays benefits even if the deductible of the employee's major medical plan has not been met.

5) Life Insurance

Life Insurance is an opportunity for employees to protect the ones they love from debt when they pass away. 68% of life insurance owners with financial dependents feel secure versus 47% of non-life insurance owners.¹¹ When an employee selects a life insurance product, they designate a beneficiary who will receive the applicable death benefits. These payments can help cover final expenses, daily living costs, or any other financial obligations — there are no restrictions on how they can be used.

The costs to live and support one's family do not stop when someone is injured or sick. Moreover, if employees are the primary wage earners of their households, unexpected medical costs or death can be a tremendous setback for the ones they love. The five supplemental products above allow small businesses to help their employees prepare to navigate the unexpected and the unknown.

Small Market Solutions from Allstate Benefits

Allstate Benefits offers a signature Small Market Solutions (SMS) program for employers that have fewer than 250 employees. This unique product portfolio offers Accident Insurance, Critical Illness Insurance, Disability Insurance, Hospital Indemnity Insurance, and Life Insurance—all with the same generous coverage details usually reserved for larger employers.
SMS also offers competitive underwriting and streamlined enrollment without adding to an employer's bottom line. Learn about SMS by clicking here or by contacting an Allstate Benefits Representative.

Related Articles:

Deferred Medical Care Can Cost Employers More Than They Think

How Small Businesses Win Big by Offering Supplemental Benefits

How Our Self-Funded Program Can Help Employers Save