What Are Ancillary Benefits?
“Ancillary Benefits” refer to benefits that are used to supplement group health insurance. Purchasing these benefits at a group level is more affordable than if purchased on an individual basis. They can be more affordable for three reasons:
1. As group insurance products, the risk is spread through a large population, which keeps premiums reasonably priced.
2. If your business takes advantage of Section 125 of the IRS code, premiums are paid with pre-tax dollars.
3. The cost can either be completely covered by the employer or shared with the employees by arranging an employer-employee split.
Types of ancillary benefits include:
· Short Term Disability
· Long Term Disability
· Critical Illness
· Hospital Indemnity