Explore the Value of Supplemental Benefits

Supplemental Insurance

As modern living becomes more connected and convenient, it's also becoming more complicated and uncertain. Fortunately, insurance options have expanded beyond standard health coverage to meet life's growing uncertainties, thanks to supplemental insurance.

Supplemental insurance exists to help fill financial gaps left by primary insurance. These optional benefits are sponsored by employers but paid for by employees through pre-tax payroll deductions.

Common supplemental products include:

• Accident Insurance
• Life Insurance
• Critical Illness Insurance
• Cancer Insurance
• Disability Insurance
• Hospital Indemnity Insurance

Supplemental offerings have expanded to include other products like identity protection, legal protection, dental, vision and more. This health coverage is provided by limited benefit insurance.

So, what do these supplemental insurance products have in common? They all answer the question, "Can you help me when my primary insurance and savings aren't enough?"

Many of us know the pain and worry of unexpected healthcare expenses that exceed standard coverage.

Supplemental insurance helps to offset the costs of high deductibles, co-payments and out-of-pocket expenses by offering a cash benefit that can help with these expenses and other living costs. Unlike primary health insurance, supplemental insurance benefits may be used however a customer wishes, including mortgage or rent, childcare, groceries and so on.

Why should employers offer supplemental benefits?

It's no surprise that, regardless of size, employers are always looking for cost-effective ways to recruit and retain the best candidates. More and more employers are gaining an edge by enhancing their standard benefits package with supplemental products.

By offering inclusive yet affordable employee-paid benefits, companies can better support their most important asset—their workforce.

Supplemental insurance helps employers by:

• Fostering health and safety for employees (and their dependents)
• Protecting employees' long-term wealth and financial wellbeing
• Reaching goals to recruit and keep top talent
• Promoting inclusion and engagement among the workforce
• Driving employee satisfaction levels

In fact, supplemental benefit offerings have been proven as a major factor in retaining employees. A survey by BenefitsPRO found that 87% of employees with supplemental benefit programs said the availability of these benefits made them feel valued by their employers.¹

As a result, employers are seeing these benefits less as supplemental and more as essential. According to Willis Towers Watson's latest Emerging Trends: Supplemental Benefits and Services Survey, more than 92% of large employers anticipate offering supplemental benefits as part of their Talent Value Proposition within the next three to five years.²

Supplemental products are available to businesses with a few as three employees, making them a great strategy for smaller companies competing for top talent.

Thanks to advancements in enrollment technology, customizable programs and improved cybersecurity, it is also getting easier for employers to offer supplemental benefits packages to employees. Most importantly, it is becoming more convenient for employees to participate.

Why should employees participate in supplemental benefits?

It makes sense to assume major medical insurance is all that's needed to cover healthcare needs. But without supplemental benefits, high-deductible health plans can put a financial burden on employees.

A Federal Reserve report found that nearly 30% of adults cannot cover a $400 expense without incurring debt or selling something. These financial hardships frequently lead to increased stress and poor health.³

By adding accident, cancer or critical illness coverage to pre-tax payroll deductions, employees can be better prepared to cover deductibles and other expenses. This proactive approach has shown to help employees and their dependents mentally, physically and financially.

While supplemental insurance can't make customers' lives less complicated or unpredictable, it does answer the question, "Can you help me when my primary insurance and savings aren't enough?" with a resounding, "Yes, we can."

At Allstate Benefits, preparing for the unexpected is at the core of what we do. We are here to protect our customers from life's uncertainties and prepare them for the future.

Related Articles:

Q&A with Allstate Benefits President David Essary

Why Hospital Indemnity Insurance Should Be Part of Every Coverage Portfolio

How Disability Insurance is a Win-Win for Workers and Employers