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How Supplemental Insurance Helps Employers and Employees

As with any relationship, the dynamic between employer and employee depends on a mutually beneficial balance of expectations. That is, they both should get something out of it.

Supplemental insurance is a perfect example of this relationship at work. Supplemental benefits include accident, critical illness, hospital indemnity, disability, cancer, life, vision and dental insurance. These are designed to complement medical insurance, which can run out in the event of an accident or illness and leave insureds to pay out-of-pocket for treatments and other costs.

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In recent years, other supplemental products have taken shape including identity protection and legal services, as well as added coverages like pet insurance and financial wellness programs.

Having access to these products can be immensely beneficial to employers as well as their employees for a variety of reasons.

Benefits to Employers

By adding supplemental insurance products to their benefits portfolio, employers win out in a few different ways.

  1. They enhance company culture and productivity.

    First, supplemental benefits have shown to provide a greater sense of community and company culture for employees. More than ever before, workers are seeking companies that champion a strong work-life balance and promote health for employees and their families. In turn, a healthier workforce can boost productivity and benefit a company's top line.

  2. They help attract top talent.

    Across the country, employers—especially small businesses—are having a hard time attracting the right candidates for open positions. In many cases, highly qualified candidates are in a position to be more selective. Just like current employees, candidates are looking for strong culture, along with greater flexibility and robust health benefits. By offering supplemental benefits, employers can stand out from competitors and attract top candidates.

  3. They pose minimal (or no) financial burden to employers.

    Because supplemental benefits are generally employee-paid, there may be little to no financial hardship on employers to offer these products. And plans are generally customizable, so employers can design benefit packages for their specific workforce.

    This is all great news for smaller employers who have trouble competing with large companies for top talent. Similarly, supplemental benefits can help larger companies connect individually with their employees. Offering supplemental benefits demonstrates that health and wellness is a top priority.

Benefits to Employees

One might wonder how supplemental benefits actually help employees when they are paying for the products. In addition to peace of mind knowing employees are covered in case of an injury or illness, the answer centers on superior pricing, coverage and convenience.

  1. They provide reduced group rates.

    While supplemental benefits like accident and life insurance can be obtained individually, this is generally a more expensive route (especially when adding a spouse and dependents). The benefit of enrolling in these products through an employer is the reduced group rates enjoyed by all employees. Plus, premiums for health products could be eligible for payroll deduction on a pre-tax basis, saving employees even more!

  2. They fill financial gaps left by medical insurance.

    Major medical insurance has become increasingly expensive with high deductibles and added out-of-pocket costs. It's not uncommon for certain coverages to max out, leaving employees to pay for healthcare, household bills and daily expenses—all while trying to recover from a major health event. Supplemental insurance fills the gaps left by major medical coverage and allows employees to keep their hard-earned savings.

  3. They are more convenient than individual policies.

    Perhaps most importantly, obtaining group coverage offers employees with the convenience of easy enrollment and renewals. No need to scour plan options or stress about underwriting approvals. Employers pre-select the plan offerings and all employees usually need to do is check a few boxes during open enrollment. Plus, their premiums are conveniently payroll-deducted.

At Allstate Benefits, we are working hard to deliver the Good Hands® promise to both the employers and employees that depend on us for protection from life's uncertainties. Get to know our products.

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From innovative group health coverage to our industry-leading portfolio of group supplemental insurance products, we have the experience, knowledge and service you need, and a name you know and trust.

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