Employee Insurance Coverage in the United States

Health insurance is one of the most important employee benefits in the United States. Almost all large firms offer a health plan, and most small employers also do.

Employer-sponsored health plans often pay more to employees than they cost the employer. That makes them a valuable addition to any business.

Life Insurance

Life Insurance coverage is an important part of your employees' overall financial protection. It can help their families manage their financial obligations, such as funeral expenses, mortgage or rent, college funding, and daily living expenses.

Several employers offer basic life policies as employee benefits, known as employer-provided group term insurance or "EPLI." These plans are generally low in cost and easy to get because they don't require medical exams or underwriting.

Supplemental life insurance is an additional type of group coverage that can be added to a workplace policy. Typically, this type of life insurance is job-dependent and can only be purchased by employees who are currently working at the company.

Supplemental plans are often more affordable than individual life insurance because the premiums straddle the costs of the employer and the employee. However, IRC section 79 requires the imputed cost of such a plan to be included in income using the IRS Premium Table.

Disability Insurance

If you can’t work because of an injury or illness, disability insurance can help replace a portion of your income. It also offers a safety net for the unexpected.

Many employers offer group disability insurance as part of their benefits packages, or employees can purchase individual policies on their own. The type of policy you choose should depend on your needs and your budget.

Short-term disability insurance typically pays out between 40 to 60 percent of your pre-disability income. Benefits typically last three to six months, but some policies pay as long as two years.

Unlike workers’ comp, which only covers injuries and illnesses that occur on the job, disability insurance is meant to cover any medical condition that prevents you from working.

It’s important to note that individual policies are usually underwritten and will require an extensive medical history before you can qualify for coverage. Similarly, your premium will be based on factors such as your age and health.

Dental Insurance

Employees rank dental insurance as the third most important benefit they look for in a job, behind only health insurance and retirement savings.

The best type of dental plan will cover a variety of procedures, services and benefits, depending on the policy. For example, a policy may pay 100% of preventive and diagnostic procedures, 80% of basic dental services such as fillings and 50% for major procedures like crowns or dentures.

Most plans have a deductible, copays or other out-of-pocket costs before the insurance company begins to pay for the care. They also typically place a cap on annual out-of-pocket maximums.

Several types of dental plans exist, including indemnity and managed care. Some plans have a wide network of dentists while others, such as those offered by Guardian, only work with a smaller number of dentists.

Vision Insurance

Whether you have vision insurance coverage through your employer or you buy it on your own, it can help protect your eye health. It may also reduce your out-of-pocket costs for routine eye care, including annual exams and prescription eyewear.

In addition to covering your eyesight, many vision plans also include other health benefits. This can include discounts on elective surgery like LASIK.

A good plan should be a good value for the price. It should have comprehensive benefits, low monthly premiums, and a responsive customer service team.

Before choosing a vision insurance company, make sure it has an in-network network of doctors and offers affordable options for eyeglasses and contact lenses. Then, research the company’s coverage details and co-pays to find a plan that fits your needs.