Why offer supplemental insurance?

Answer 1

I'm assuming you are an employer or human resources personnel the way the question is phrased. With that being said, there are multiple advantages to offering supplemental insurance.

Some Employer Advantages:*enhance your benefit package at no direct cost to the company *helps you be competitive in the employment market and keep them *builds loyalty to the organization and increases morale, IF you utilize an agent that extends a great level of service which includes educating them on why there is a need for such insurance like Aflac agents are trained to do *no contribution requirements - policies are affordable (typically less than an hour's wage/wk) and the employee's pay for it 100% on their own all the time. *minimal participation requirements (my company only needs 3 participants no matter the size of the company). However, if an astute agent is given support and access to just explain the need and some advantages in owning this type insurance with no pressure or obligation to buy, there is typically a 60% average participation *lower your payroll tax liability

...just to name a few. If you are asking why there is a need for supplemental insurance then:

3 things tend to happen if someone is dealing with a serious injury or illness in the household:

A. There will be medical treatment, thus medical bills. And I hope you have health insurance in place to address the Dr's and hosp bills although it's not a requirement to have supplemental insurance. Even if you do have health insurance, does it pay 100% of the bills all the time??

B. Potential for loss of income - direct or indirect. Direct meaning it's the employee that is sick or injured and unable to perform his/her job duties. Indirect meaning the spouse/child is the one sick or injured and keeping the employee from coming to perform his job duties. With so many 2 income households, we find that most often both the direct & indirect interruptions are happening if it's a serious illness or injury.

C. So it warrants asking, if there are more bills coming into the household and less income coming in to the household then how are you paying the day to day bills, e.g. mortgage/rent, electric, water, sewer, gas, phone, car, car insurance, credit cards, etc.

Supplemental policies pay cash dollars directly to the policyholder to take care of whatever they deem necessary. There's a whole lot more to it but that's pretty much the cliff note version.