Voluntary Plans

Employees who look to you as a resource for their health insurance also turn to you for help with their personal financial affairs. But providing them with voluntary insurance is advantageous to you too. Higginbotham can help reduce your direct insurance costs by supplementing your group plans with voluntary plans while keeping your benefits package competitive for your industry.

Where does your responsibility to employees end? You can help them help themselves with minimal administrative cost by offering voluntary insurance plans key to protecting against the four major financial risks encountered during their working years:

  1. Life—group and individual term (payroll or non-payroll) or permanent
    • For all generations making up the workforce (Baby Boomers, Generations X and Y), the workplace is the second most common place to buy life insurance, citing convenience and confidence in the company based on perceived “employer approval.”1
    • Insured adults are more likely to have only group life insurance obtained through the workplace. Adults with only group coverage carry the lowest amounts of life insurance.1
  2. Disability income—short term, long term or a hybrid
    • Accident or illness will force one in five U.S. employees to miss work for at least a year before they turn 65.2
    • 350,000 personal bankruptcies every year are blamed on injuries or unexpected illnesses. 3
  3. Critical illness—paired with a group health plan to cover treatment and recovery expenses
    • One in four full-time employees has less than $500 available to them in the event of a serious medical event.4
    • Stroke is the leading cause of serious, long-term disability in the U.S., with 50 to 70 percent of stroke survivors regaining functional independence and 15 to 30 percent permanently disabled.5
  4. Identity theft—consistently monitors for threats and alerts you of invasions by a case manager assigned to restore your identity to its pre-theft state 
    • The identities of more than 11 million people are compromised each year.6
    • The inspector general estimates that more than 1.5 million fraudulent tax returns are filed each year by identity thieves.7
    • The average victim loses more than $4,841 and spends 330 hours in recovery time.8

Higginbotham has in-house voluntary worksite plan advisors who coordinate with your group benefit plan broker to provide one harmonious package for your employees. We also conduct enrollment meetings so employees understand your menu of group and voluntary plan options and can choose those that best fit their lifestyles.

Other Common Voluntary Plans

Accident

Provides benefits for medical expenses due to a covered accident. Benefits are paid in addition to any health insurance coverage. Most plans cover hospital confinement, emergency room benefits, ambulance benefits and certain scheduled medical expenses.

Medical Gap

Pays for in-hospital benefits, out-patient benefits and physician benefits to offset the deductibles, co-pays and co-insurance of a group health plan. As such, the plan’s benefit schedule should be coordinated with the group health plan.

Limited Medical

Gives employees access to the most common health care services, such as doctor visits, prescriptions, diagnostic benefits, daily in-hospital benefits, surgical benefits and other optional benefits. It is a good option for employees who are not eligible for your group health plan.

Dental and Vision

Covers a portion of the costs associated with dental and vision care. Network discount plans, DHMOs, traditional indemnity plans and Direct Reimbursement plans are available for dental coverage. Vision PPO plans provide in-network and out-of-network benefits for covered employees and their families.

Cancer

Provides cash benefits for qualified cancer treatments. Although health insurance will pay the medical expenses associated with fighting cancer, a cancer plan will help with the non-medical expenses, including loss of income, out of town treatment, special diets, routine living costs and household upkeep. In addition to the non-medical expenses, most health plans have deductibles and other cost-sharing arrangements.

Long-term Care

Covers long term care services in a facility such as a nursing home, assisted living center, adult day care, hospice or at home. If a covered individual is unable to perform two of the six Activities of Daily Living, a daily benefit is paid after a waiting period has been met. Most plans offer two-year, three-year, four-year, five-year and lifetime benefit periods.

Source data from: 1 LIMRA International. 2 Life and Health Insurance Foundation for Education, November 2005. 3 “Illness and Injury as Contributions of Bankruptcy,” Health Affairs, February 2005. 4 MetLife Annual Employee Benefits Trend Study, 2009. 5 2003 Heart and Stroke Statistical Update, The American Heart Association. 6 Javellin Strategy & Research. 7 Federal Trade Commission. 8 Consumer Sentinel Network.