Benefits for Employees
As a business owner, you’re often challenged to find ways to do something extra to retain valuable employees and attract new talent.
Retirement income is critically important to you and your employees. When employees contribute to a retirement plan it can help reduce the businesses’ taxable income. A solid retirement plan can also be a factor in retaining loyal employees
Additional benefits for your employees
If your employees need coverage to supplement or fill in the gaps of their current benefits package, you can offer select products that may be able to be paid by the convenience of payroll deduction. This may include:
- Life insurance – even if you provide life insurance equal to the employee’s base salary, you may allow those wishing more coverage to increase the death benefit or add coverage for family members throughthe purchase of supplemental life insurance
- Disability insurance – as with life insurance, employers who are not in the position to fund a disability insurance program for their employees can offer a voluntary benefit, which is employee paid. This allows workers to get coverage more easily than if they were to purchase an individual policy on their own outside of the workplace
- Long-term care insurance – this is a benefit that is growing in popularity because long-term care insurance is completely portable and the majority of people over age 65 will need long-term care services at some point in their lives; most business owners that offer long-term care insurance to their workers do so in the form of a voluntary benefit
- Critical illness insurance – this is a relatively new type of insurance that pays benefits when a person is diagnosed with cancer or has a heart attack; the idea is that the benefit can be used to help pay for costs not covered by health insurance like travel expenses, prescription drugs, etc.
- Other coverage – you may also consider offering health, dental and/or vision insurance
Special Compensation Arrangements for Key Employees
- Executive bonus plan – this plan can help you retain valued employees by adding life insurance and disability income protection to their benefits package. This coverage can help with important individual financial needs, such as college funding, estate liquidity and supplemental retirement
- Deferred compensation plans – for owners of regularly incorporated businesses and key employees of all types of businesses, these plans could help save taxes by deferring some of their current salary until retirement
- Additional benefits – coverage is also available to help provide key employees with benefits in the event of an unforeseen circumstance, such as illness or injury