Ancillary Group Benefits 

Ancillary insurance group benefits are supplementary insurance offerings provided by employers to complement primary health insurance coverage. These benefits typically include Dental, Vision, Disability, Life, Key Person and Business Continuity Plan insurance, among others. By offering ancillary insurance group benefits, employers can enhance the overall healthcare package for employees, addressing additional healthcare needs beyond medical coverage. These benefits not only provide financial protection for employees in the event of unforeseen circumstances but also contribute to their overall well-being. By providing a comprehensive insurance package, employers can attract and retain talent while promoting the health and security of their workforce.

Ancillary Group Benefits

Advantages of Ancillary Group Benefits

Ancillary group plans, also known as supplemental or voluntary benefits, offer several advantages for both employers and employees. Here are some key benefits:

Advantages for Employers

Enhanced Employee Satisfaction

Offering a diverse range of ancillary benefits demonstrates an employer’s commitment to employee well-being. This can lead to higher levels of job satisfaction and morale among employees.

Attraction and Retention of Talent

Employer contributions to group health plans are generally tax-deductible as business expenses. Additionally, employees’ contributions to group health insurance premiums are typically made with pre-tax dollars, reducing their taxable income.

Cost-Effective Recruitment

Ancillary benefits can be added to the overall benefits package at a relatively low cost to the employer. This allows employers to enhance their benefits offerings without significantly increasing expenses.

Tax Advantages

Employer contributions to ancillary benefits may be tax-deductible as business expenses. Additionally, employees’ contributions to certain ancillary benefits may be made with pre-tax dollars, reducing their taxable income.

Improved Productivity

Ancillary benefits that promote health and wellness, such as wellness programs or gym memberships, can lead to healthier and more engaged employees. This, in turn, can result in higher productivity and reduced absenteeism.

Customization

Employers can tailor their ancillary benefit offerings to meet the specific needs and preferences of their workforce. This allows employers to provide benefits that are relevant and valuable to their employees.

Advantages for Employees

Increased Financial Protection

Ancillary benefits provide additional financial protection to employees and their families in the event of illness, injury, or other unforeseen circumstances. For example, disability insurance can help replace lost income if an employee becomes unable to work due to disability.

Access to Services and Discounts

Ancillary benefits often include access to services and discounts that can help employees save money on healthcare expenses. For example, vision insurance may cover the cost of eye exams and glasses, while dental insurance may provide discounts on dental procedures.

Wellness Support

Many ancillary benefits include wellness programs and resources designed to promote employee health and well-being. These programs may include fitness memberships, smoking cessation programs, mental health resources, and more.

Flexible Coverage Options

Ancillary benefits allow employees to choose the coverage options that best meet their individual needs and preferences. This flexibility ensures that employees can access the benefits that are most relevant to them.

Peace of Mind

Knowing that they have access to ancillary benefits can provide employees with peace of mind, knowing that they are protected against unexpected expenses and have support in maintaining their health and well-being.

Overall, ancillary group plans offer a range of advantages for both employers and employees, including enhanced employee satisfaction, attraction and retention of talent, cost-effective recruitment, tax advantages, improved productivity, customization, increased financial protection, access to services and discounts, wellness support, flexible coverage options, and peace of mind. By offering ancillary benefits, employers can create a more competitive and supportive workplace environment while also supporting the health and well-being of their employees.

Types of Ancillary Group Plans

These are just a few examples of the types of ancillary group plans that employers may offer to complement their employees’ overall benefits package. The specific offerings may vary depending on the employer’s preferences, budget, and the needs of their workforce.

Types ofAncillary Group Plans
Dental Insurance

Dental insurance covers routine dental care, including cleanings, exams, fillings, and other dental procedures. It may also include coverage for orthodontic treatment and major dental work, such as crowns or root canals.

Disability Insurance

Disability insurance provides income replacement if an employee becomes unable to work due to a covered illness or injury. Short-term disability insurance typically covers disabilities lasting a few months to a year, while long-term disability insurance provides coverage for extended periods, often until retirement age.

Vision Insurance

Vision insurance covers eye care services and products, including eye exams, prescription eyewear (glasses and contact lenses), and discounts on corrective procedures like LASIK surgery.

Life Insurance

Life insurance provides a death benefit to the employee’s beneficiaries in the event of the employee’s death. It can help replace lost income, cover funeral expenses, and provide financial security for surviving family members.

Accident Insurance

Accident insurance provides financial protection in the event of accidental injuries, such as fractures, dislocations, burns, or concussions. It typically pays a lump-sum benefit to the insured to help cover medical expenses or other costs associated with the accident.

Critical Illness Insurance

Critical illness insurance provides a lump-sum benefit if an employee is diagnosed with a covered critical illness, such as cancer, heart attack, stroke, or organ failure. The benefit can be used to cover medical expenses, lost income, or other financial needs.

Hospital Indemnity Insurance:

Hospital indemnity insurance pays a fixed daily, weekly, or monthly benefit if an employee is hospitalized due to a covered illness or injury. The benefit can help cover hospital expenses or other out-of-pocket costs associated with the hospital stay.

Cancer Insurance

Cancer insurance provides financial protection specifically for cancer-related expenses, such as medical treatments, surgeries, medications, and other costs not covered by health insurance. It may also include benefits for cancer screenings and preventive care.

Wellness Programs

Wellness programs promote employee health and well-being through various initiatives, such as fitness challenges, smoking cessation programs, nutrition counseling, stress management workshops, and health screenings.

Employee Assistance Programs (EAPs)

EAPs offer confidential counseling, referral, and support services to employees and their families to help address personal or work-related challenges, such as mental health issues, substance abuse, financial problems, or legal concerns.

Key Person Life Insurance

Key Person Life Insurance

Key person protection insurance, also known as key person insurance or key employee insurance, is a type of life insurance policy taken out by a business on the life of a key individual within the organization.

Here are the key features and considerations of key person protection insurance:

Purpose

The primary purpose of key person protection insurance is to protect the business from financial losses that may occur due to the death or incapacitation of a key person. This individual could be a founder, owner, executive, key employee, or anyone whose expertise, knowledge, skills, or relationships are vital to the company’s success.

Coverage

The business purchases a life insurance policy on the key person, with the company as the beneficiary. In the event of the key person’s death, the insurance policy pays out a death benefit to the business, providing financial support to help the company weather the loss.

Types of Coverage

Key person protection insurance typically comes in two main forms:

    • Life Insurance: This type of policy pays out a lump sum to the company upon the death of the insured key person.
    • Disability Insurance: Some policies also provide coverage in the event of the key person becoming disabled and unable to work. Disability insurance policies pay out a benefit to the company to compensate for lost income or additional expenses incurred due to the disability.

Premiums

The business pays the premiums for the key person protection insurance policy. Premiums are based on various factors, including the age, health, occupation, and coverage amount of the key person, as well as the type of policy and the insurance company’s underwriting criteria.

Tax Treatment

In many jurisdictions, premiums paid for key person protection insurance are not tax-deductible as a business expense. However, the death benefit received by the company upon the key person’s death is typically tax-free. It’s essential to consult with a tax advisor or financial professional to understand the tax implications specific to your situation.

Benefit Uses

The proceeds from a key person protection insurance policy can be used by the company for various purposes, such as:

    • Covering lost revenue or profits resulting from the key person’s absence.
    • Funding recruitment and training costs to replace the key person.
    • Repaying debts or loans that the key person guaranteed or secured.
    • Providing financial stability during a transitional period while the company adjusts to the loss.

Importance

Key person protection insurance is crucial for businesses, especially smaller enterprises where the loss of a key individual can have a significant impact on operations, revenue, and profitability. Having key person protection insurance in place helps ensure business continuity and financial stability in the event of an unexpected loss.

Overall, key person protection insurance is a valuable risk management tool that provides businesses with financial security and peace of mind by safeguarding against the potential financial consequences of losing a key individual within the organization.

Business Continuity Plan

Business continuity insurance, also known as business continuation insurance or business succession insurance, is a type of insurance coverage designed to protect a business in the event of the death or disability of a key individual, such as a business owner or partner.

Here are the key features and considerations of business continuation insurance:

Business Continuity Plan

Purpose

The primary purpose of business continuation insurance is to provide financial support to the business and its owners in the event of the death or disability of a key individual. This coverage helps ensure business continuity and stability during a challenging transition period.

Coverage

Business continuation insurance typically involves the purchase of life insurance or disability insurance policies on the lives of key individuals within the business, such as owners, partners, or key employees. The policies pay out a death benefit or disability benefit to the business or the surviving owners in the event of the insured individual’s death or disability.

Types of Coverage

Business continuation insurance can take several forms, including:

    • Buy-Sell Agreement Funding: In a buy-sell agreement, business owners agree to buy out the interests of a deceased or disabled owner. Business continuation insurance provides the funding necessary to execute the buyout, ensuring a smooth transition of ownership.
    • Key Person Insurance: This type of coverage protects the business from the financial impact of losing a key employee or executive. The insurance proceeds can help cover lost revenue, recruitment costs, or other expenses associated with replacing the key individual.
    • Cross-Purchase Plan: In a cross-purchase plan, each business owner purchases a life insurance policy on the lives of the other owners. In the event of a owner’s death, the surviving owners use the insurance proceeds to buy out the deceased owner’s share of the business.
    • Entity Redemption Plan: In an entity redemption plan, the business itself purchases life insurance policies on the lives of the owners. Upon the death of an owner, the business uses the insurance proceeds to buy out the deceased owner’s share of the business.

Premiums

The business pays the premiums for the business continuation insurance policies. Premiums are based on factors such as the age, health, and coverage amount of the insured individuals, as well as the type of policy and the insurance company’s underwriting criteria.

Tax Treatment

In many jurisdictions, premiums paid for business continuation insurance are not tax-deductible as a business expense. However, the death benefit received by the business or the surviving owners is typically tax-free. It’s essential to consult with a tax advisor or financial professional to understand the tax implications specific to your situation.

Benefit Uses

The insurance proceeds from a business continuation insurance policy are typically used to facilitate the smooth transition of ownership and ensure business continuity. The funds can be used to:

    • Buy out the interests of a deceased or disabled owner.
    • Cover business debts or obligations.
    • Provide financial support to the surviving owners or their families.

Importance

Business continuation insurance is essential for businesses, particularly small and medium-sized enterprises (SMEs), where the loss of a key individual can have a significant impact on operations, revenue, and profitability. Having business continuation insurance in place helps ensure business continuity, financial stability, and peace of mind for the owners and stakeholders.

Overall, business continuation insurance is a valuable risk management tool that provides businesses with financial security and protection against the potential disruptions caused by the death or disability of a key individual within the organization.

Employee Benefits Done Right

The Millward Agency, Inc. Testimonials

Kurtis ThorntonKurtis Thornton
18:38 16 Jan 22
Very helpful and nice people, a great place to get your insurance needs taken care of.
Christopher LymanChristopher Lyman
14:48 26 Oct 19
Finally, I don't need to ever look for another insurance agent. The Millward Agency handles my personal and business insurance. Always helpful with my questions and quick to respond to my emergencies. The Millward Agency Rocks!
Markusz SudozMarkusz Sudoz
19:03 19 Jul 19
Every time I go to my broker, Ed Caceres @ the Millward Agency, he always finds me the best insurance rates on my real estate properties. Ed is great, always extremely responsive and understanding of the industry. In the past I would go do my own insurance shopping and spend hours on hours to get the best rate, now I do not even bother shopping around I just call Ed and he always has the best pricing. In the beginning I got a quote from Ed then shopped around, now I have learned to not even waste my time. Ed @ Millward Always saves me hundreds of dollars. 110% on customer service, 100% on pricing!!! A+++
Mobility SolutionsMobility Solutions
19:09 25 Jul 18
Everybody!!!!! is Great to work with when ever I need anything which is almost monthly.Linda
carlene klebecarlene klebe
20:01 22 Jun 18
My former insurance agent and friend recommended Ed Caceres of Millward Agency. Within hours of having given Ed a call, I had quotes and was decided to go with his carrier. He was professional and answered all my questions. I’m happy to have done business with Ed and Millward Agency.
John CourtneyJohn Courtney
16:20 11 Jun 18
Business or Personal this is who you want - Personal service from their Team is amazing, treat as though you are their only client.* Business - Review policy/coverage every year. Not limited to one or two insurance providers. Recommend changes, not necessarily to save money (although it is available) provide additional coverage. Three months later our additional coverage cost $150 on a $15000 claim. For years we were not covered! They are not limited to one or two insurance providers as our previous agent.* Personal - couple of claims were handled like we were their only client. They bundled coverage in such a way to save $2100 a year for a family of four and kids in college.***Will continue to recommend to business colleagues, friends and family***
Karen CarterKaren Carter
16:01 08 Jun 18
Our company has been working with Millward Agency for many years.They have been the best insurance company I have ever worked with.The staff is always very informative and very professional. Our insurance needs which include general, auto and worker's comp are very complex. Millward is able to handle and update all of our needs at any time of the year. I really like the fact they get back to you very quickly! They are very knowledgeable and caring we never think of going elsewhere. We will definitely be customers for years to come. Thank you Millward Agency!
Chad StottChad Stott
17:56 07 Jun 18
Wade and the Millward team have been consistently reliable, prompt, knowledgeable and a pleasure to work with. Wade and his crew have guided us through our ever growing needs and we attribute our success to the partnerships we have forged with organizations like The Millward Agency. We look forward to many more years working together.
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