VOLUNTARY BENEFIT PLANS
A good voluntary benefit program allows you to offer your employees more benefit choices without impacting your employee benefits budget. The Fairfax Insurance Group offers fully insured plans from top rated insurance carriers and will help you choose a program that is right for your company.
Features of Voluntary Programs
Voluntary employee benefit plans differ from traditional group plans in two key areas:
1. Contributions
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- Unlike traditional group benefits (such as medical, dental & disability) that require the employer to pay some portion of the premium, voluntary programs require no employer contributions. Voluntary plans are sponsored by the employer, but the premiums are paid 100% by the employee through the convenience of payroll deduction.
- The employees may pay their premiums (for certain products) on a pre-tax basis through an IRS approved “Section 125” plan. The result is a tax savings for the employee as well as the employer!
2. Enrollment Percentage
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- Traditional group benefits require high levels of participation, typically 75%, but voluntary programs generally require only 20% of the eligible employees to enroll, and plans from some carriers have no participation requirement at all.
Advantages of Voluntary Benefits
- No Employer Premium Costs – Voluntary benefits are a great way to provide employees with the benefits they want and desire with little or no premium cost to the company.
- Enhanced Benefit Program – Employees or prospective employees have access to a greater array of benefits that they can chose from, based on their needs.
- Employee Retention – Companies with strong employee benefits packages have lower employee turnover and find it easier to attract prospects looking for employment. This is critical when the employment pool is reduced due to high levels of employment.
- Group Rates – By utilizing the purchasing power of your group, the employees get access to benefits at low group rates.
- Favorable Underwriting – Disability coverage and life insurance are extremely difficult to find on an individual basis if the insured has a less than favorable medical history. These products have simplified underwriting requirements or in many cases are guaranteed issue (no health questions!).
- Promotes Goodwill – ABC members around the country are beginning to offer voluntary benefits.
Voluntary Employee Paid Benefit Plans Offered by The Fairfax Insurance Group
| Type of Coverage
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Benefits
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| Accident/Disability |
An Accident Expense Plan is designed to help cover the expenses associated with an accidental injury. It pays you directly, regardless of any other insurance you may have.
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| Dental
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Various carriers featuring dental plans that provide basic, preventive and/or major dental benefits for covered individuals. Some plans offer a Dental Wellness Benefit that is payable once per visit, regardless of the number of treatments received. This benefit is payable twice per policy year per covered person. A dentist or dental hygienist must perform the treatment. There is no waiting period for this benefit. |
| Hospital Confinement Indemnity | Coverage pays a benefit when a person is billed for required hospital confinement of 14 or more hours for a covered sickness or injury. Benefits can be designed to include coverage for:
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| Hospital Intensive Care | This plan pays a benefit if you or any covered individual is confined to a hospital intensive care unit regardless of any other insurance you may have. |
| Life
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Employees can choose term life insurance, whole life insurance or a combination of both to provide the level of coverage they need. Up to $100,000 ($50,000 for applicants over age 50) total coverage can be applied for. In addition, the health questions on the application for coverage do not require a medical exam or blood test. Premiums will be automatically deducted from the participants paycheck. Coverage automatically includes a Waiver of Premium Benefit in case of total disability and an Accelerated Death Benefit |
| Specified Health Event | This plan pays a benefit when a covered individual is first diagnosed as having a covered life-threatening health event. Coverage includes benefits for hospital confinement, continuing care and continuation of coverage. The following life-threatening events are covered:
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