How Does It Work?
Traditional health insurance covers many aspects of your employee's medical care, but it isn't without its holes. Things like the insurance deductible, physical therapy, postoperative care, wheelchairs, crutches and more must all be covered out-of-pocket. The out-of-pocket expenses for accidental injuries can easily amount to thousands of dollars. In some cases, these expenses could even end up being more than the cost of the medical procedure that was covered.
With accident insurance, your employee receives a lump sum payout based on the type of accident and the expected duration of treatment. The lump sum payment can be used in any way your employee sees fit, whether it goes directly to the medical expenses or it's used for other important financial obligations.
What Does It Cover?
A payout can be issued in many different circumstances including accidental burns, fractures, ambulance rides, hospital confinement, and emergency room treatments. This payout can then be used to cover the out-of-pocket expenses associated with the accident. Specifics will vary between carriers, but most will cover these basics and some even offer "riders", optional enhancements that can be used to customize the policy. For example, families with athletic children might be interested in a rider that offers a higher payout for accidents that occur during an organized sport.
Why Do Employees Like It?
Accident insurance provides an invaluable safety net to your employees. Studies show that the majority of Americans simply lack the savings required to cover unexpected bills. When you take into consideration the rising cost of healthcare and the fact that medical expenses make up a sizeable portion of unexpected bills, you get a pretty bleak picture. Without some kind of outside help, a serious injury could easily destroy a family's financial health.
It's no wonder then that employees appreciate an affordable insurance option that can help cover the cost of these unexpected out-of-pocket medical bills. The nature of the lump sum payment also means that employees are free to choose how they allocate resources. This kind of flexibility is something that employees love to see in their benefits package. The best part is it's voluntary, so those employees who would prefer to use their own savings for medical expenses are free to opt out.
At Summerlin-Roberts we know how important it is to offer a competitive benefits package. Our employee benefits programs are strategically designed and can be fully tailored to your unique organizational needs. Please contact us today to learn more about our employee benefits services.