8 min read Pick your path, and choose a life insurance plan to cover mortgages, car payments, student loan debt, and more.
Building an employee benefits package isn’t something you can just check mark the products you want to offer. You have to look at your entire company culture, demographics and goals to make sure they match what you need now and for the future. Corkill helps you navigate the complexity of employee benefits to build a program that’s right for you. We also give you a head start to understanding all that goes into making your program with a few of our most commonly asked questions.
As an employer, there are certain benefits you’re legally mandated to provide. This includes Social Security, unemployment insurance and worker’s compensation. But there are more options you can include to sweeten the package for your employees. Health insurance, sick pay, vacation time and personal leave are common, but you can also include disability insurance, life insurance, retirement plans, education reimbursement and bonuses. Corkill will help you determine which benefits make the most sense for your employees and how much you are willing to pay for your program.
Most health insurance plans have a monthly premium with deductibles and co-pays. But beyond that, there are four types of plans you can choose. Health maintenance organizations (HMOs), preferred provider networks (PPOs), point of service (POS) health care plans, and a high-deductible plan with a health savings account attached to it. The level of coverage you choose for your employees determines how much you pay.
Offering a short- or long-term disability plan is a great benefit for employees. This benefit can be employer or employee paid, but most companies opt to pay for this coverage as part of their employee benefits package.
The most common life insurance offered for employees is term life insurance, meaning the term is only as long as the employee is employed. How much coverage this policy covers is up to you. Some business provide a small amount, like $10,000 to help with final expenses, where others insure the employee up to a full year of their salary.
Fully-insured plans are the most common. Your company pays a premium to an insurance carrier, and that premium is fixed for a year based on how many employees are in the plan each month. Employees are responsible for co-payments and deductibles – as well as any premium share you specify. With a self-funded plan, your company (usually a larger business) operates its own health plan. This can save you some dollars because you’re not paying a profit margin to an insurance company, but it does open your company up to risk if more claim than expected must be paid. Many companies with this option, opt to carry stop-loss insurance which reimburses you for claims that exceed a predetermined amount.