Ancillary Benefits

Ancillary benefits are insurance and benefit plans that help round out the health insurance component of an employee benefits program. These benefits can be employer funded or offered on a voluntary basis (employee pays for coverage).

Ancillary benefits include but are not limited to:

• Group life insurance
• Accidental death & dismemberment insurance (AD&D)
• Dental coverage
• Vision coverage
• Disability coverage
• Long-term care insurance
• Voluntary benefits 

Group Life Insurance

Group life insurance can include:

• Term Life Insurance
• Whole Life Insurance
• Universal Life Insurance
• Variable Universal Life Insurance

Accidental Death & Dismemberment Insurance (AD&D)

In the event of an accidental death, this insurance will pay benefits in addition to any life insurance held by the employee. In addition, fractional amounts of the policy will be paid out if the covered employee loses a bodily appendage or sight because of an accident.

Dental Benefits

Dental benefits provide coverage for such services as oral exams, x-rays, fillings, root canals, gum disease, orthodontics, crowns, dentures and implants.

Dental plan benefits can be:

• Employer funded, fully insured (the employer funds a significant portion of the premium). The employer pays the premium, the carrier pays the claims. Strong discounts in pricing when the employer funds 100% of the premium.
• Employer funded, administrative services only (the employer selects an administrator/dental PPO network to access their claim logic/network discounts and funds the plan based on the claims activity). This may be attractive to employers who have had dental plans for a long period of time and have a steady employee workforce. The employee can contribute towards the cost of the plan.
• Employer sponsored, 100% paid for by the employee. These plans usually have less robust coverage than employer funded dental plans-especially in the area of major dental services. Pricing is typically higher due to the adverse selection that exists in voluntary dental plans. The load for adverse selection decreases as participation increases.

Vision Benefits

Vision insurance plans offer coverage for eye exams and glasses/contacts and may include discounts for services such as Lasik eye surgery.

Vision plan premiums are generally very reasonably priced. In addition, vision exams help assess your overall health and correct vision problems.

Vision plan benefits can be:

• Employer funded, fully insured (the employer funds a significant portion of the premium). The employer pays the premium, the carrier pays the claims. The employee can contribute towards the cost of the plan.
• Employer funded, administrative services only (the employer selects an administrator/vision PPO network to access their claim logic/network discounts and funds the plan based on the claims activity). This may be attractive to employers who have had vision plans for a long period of time and have a steady employee workforce. The employee can contribute towards the cost of the plan.
• Employer sponsored, 100% paid for by the employee. These plans usually have less robust coverage than employer funded vision plans-especially in the area of major vision services. Pricing is typically higher due to the adverse selection that exists in voluntary vision plans. The load for adverse selection decreases as participation increases.

Disability Insurance

We think that for most employees, protecting income in the event of a catastrophic event is a very high priority, yet many do not know what they have at work or even if they have it. Some employers do not offer disability programs, and many provide disability coverage yet these contracts have shortfalls. These "gaps" require an advisor to point out where the employer's coverage leaves off. Outside of their employer-sponsored insurance benefits, people understand the importance of purchasing insurance on their personal assets such as their homes, car and other big ticket items. However, they often overlook protecting the one asset which makes acquiring all other assets possible: their ability to earn income.

NFP has the knowledge, expertise and resources to help employers find the appropriate income protection solutions for both rank-and-file and highly compensated employees, including:

• Short-term disability (STD)
• Long-term disability (LTD)
• Multi-life disability
• Individual and business overhead
• Buy/sell
• High limit disability for high income professionals

Long-term Care

Many employers do not realize there is a huge gap in their employee retirement savings plan — the risk of their employees needing long-term care services. It is critical that employees plan during their working years when insurance is affordable. Furthermore, they are looking for confirmation and encouragement to begin the planning process from their employers — the same trusted resource that is helping them plan for retirement. Employer-based long-term care insurance is an essential part of a comprehensive benefits package. From the federal government to the majority of S&P 500 companies, many firms are now offering long-term care insurance to their employees.

It Helps Protect Assets

Well-informed and financially savvy people understand the dangers that a long-term care episode can present to their financial portfolios. In fact, paying for a long-term care stay out-of-pocket can be a large contributor to the depletion of assets throughout the retiree population.

It Gives People a Choice about Care

Although Medicare and Medicaid pay for long-term care costs, coverage may be limited. Long-term care insurance policies make it possible to receive care where people want and need it most. Some policies will also pay benefits internationally.

It Eases the Burden on Family Members

Providing care can place an extreme physical, emotional and financial burden on loved ones. Long-term care insurance allows family members to be involved in the care-giving process without being the primary provider.

NFP can assist you from start to finish in implementing corporate, individual, nonprofit or association long-term care plans.

Voluntary Benefits 

Voluntary benefits continue to gain momentum in the workplace by allowing employers the opportunity to maintain a robust benefits program while providing employees with access, choice and affordability. NFP recognizes the vital role that voluntary benefits plays in a total benefits strategy, but also realizes that administratively it is very different from that of traditional group solutions. What distinguishes us from the rest of the industry is our consultative and analytical approach to each client's benefits product lineup and administrative process.