Most jobs offer at least some workplace benefits. These often include a retirement plan and partially paid health insurance, but many employers also offer a whole host of other benefits, including universal life insurance, long-term care insurance, disability insurance, accident insurance and critical illness insurance.
What are they?
Work benefits are mostly different types of insurance. Though employers traditionally pay all or part of employee health insurance benefits and may pay for a small life insurance policy, the employee usually has to pay for any other benefits that are offered.
Who are they for?
Workplace benefits usually are open to all employees of a company or at least those who are full time or work a certain number of hours. There may be other requirements to meet, but the company generally has to have universal standards for who is and isn’t eligible for the benefits.
How do they work?
Most employers that offer supplemental benefits at work allow employees to have the costs deducted from their paychecks, which makes it convenient to pay for the benefits. When claims are made, the employee may or may not receive assistance from the employer in making those claims.
Different types of coverage
Work benefits almost always include a retirement plan such as a 401k and health insurance. Many companies also offer life insurance to employees, and some even pay the premiums. Other common benefits include short- and long-term disability, accident insurance, long-term care insurance and critical illness insurance.
There are several benefits to getting access to supplemental benefits at work. One of the biggest is the ability to pay group rates, which usually results in lower premiums than you would pay individually. Another benefit is easy access to types of insurance you might never encounter. For example, most people don’t seek out an insurance agent to buy disability insurance or accident insurance. The convenience of paying through a payroll deduction is another major benefit.