September 15, 2020

Are your employees “financially well” and prepared for out-of-pocket costs during a pandemic?

The pandemic has created unprecedented economic hardship for many employers and their employees. Municipal employers are no exception, with falling city revenues leading to budgetary constraints. Public sector employees are similarly feeling this economic toll. Now more than ever, financial security and stability should be top-of-mind. As an employer, this presents an opportunity to review your voluntary benefits package to provide cost-effective financial protection programs and enhancements.

Employee financial “wellness” is an important aspect of a well-rounded benefits program for any city or organization. Employers are the main source of financial protection products for the average American worker by way of employer sponsored benefits. In addition, employees that feel as if they are financially sound and protected, are less stressed and more productive in the short and long term.

Historically, municipalities provided employees with very little, to no out-of-pocket healthcare costs. But in recent years, many municipal employees have experienced increased deductibles, out-of-pocket maximums, copays, and prescription costs. In addition, early career municipal employees may not have the accrued benefits that could be used to provide adequate financial protection should an illness or accident occur. In these uncertain economic times, families are also concerned about job security—not only from themselves but for their spouse.

There are several ways to significantly impact the financial protection of your employees and provide in-depth knowledge of their benefits during this challenging year. There has never been a better time to review the life insurance options offered by your city.  At The Fedeli Group, we can evaluate your current Basic Group Term Life plan to see how it measures up against the latest benchmarking data.

Are you offering a competitive option and is there a way to improve that benefit with minimal cost implications?

Another variable to address is if you offer Voluntary Term Life Insurance options. Voluntary Life Insurance allows your employees to purchase additional life insurance for themselves, their spouse or their children. If it is already in place, can the current program be improved upon with higher maximum amounts that would be offered at guarantee issue (meaning no medical health questions necessary to qualify for coverage)? The considerations regarding Life Insurance have never been more important.

There are other significant benefits that fall under the category of “paycheck and savings protection”. Do your employees have access to financial protection products that would assist them if they or a family member were to get critically ill or have an accident? Would they have enough at hand to not have the need to utilize their savings or significantly impact their financial stability? There has never been a better time to learn more about Disability Coverage, Critical Illness Insurance, Accident Insurance or Hospital Indemnity Insurance to address the needs of your employees.

Most American workers are living without the financial safety net of Disability Insurance. It ensures that an employee continues to receive income, typically a percentage of their weekly or monthly salary, if they are out of work for a sickness or injury. Disability Coverage can be offered on a voluntary basis, with employees electing the coverage they want and purchasing via payroll deduction. Disability Coverage ensures that an employee’s life continues to run smoothly, even if they are unable to work and receive a paycheck.

Critical Illness Insurance covers critical illnesses like cancer, heart attack and stroke. These conditions can be a huge financial challenge for any individual or family, especially if they are out of work for treatment or recovery time. While traditional health insurance pays doctors and medical facilities for treatment, Critical Illness Insurance pays a lump sum tax free amount directly to the individual upon the diagnosis of a covered critical illness. The cash received can be utilized to the discretion of the recipient for any financial need, not limited to out of pocket medical costs.

Another highly utilized coverage option is Accident Insurance. Accidents happen all the time, obviously unexpectedly, and can incur major out of pocket expenses for individuals and families. Accident Insurance does not pay doctors, hospitals or coordinate with medical insurance companies. It pays directly to the insured based on the injury sustained and treatment received. Again, the cash received is tax free and can be utilized at the discretion of the policy holder for any financial need they may have.

Health insurance pays for medical services after copays, co-insurance and deductibles, Hospital Indemnity Insurance pays if the member is hospitalized. Hospital Indemnity Coverage can be essential during a pandemic. This coverage pays members for any inpatient hospital stay. Hospital Indemnity Insurance can have financial protections for members hospitalized that may be receiving various treatments, tests and therapies that create additional out-of-pocket costs beyond what the medical plan may cover.

The Fedeli Group is uniquely positioned to bring you options for competitive and comprehensive financial protection products. We can offer a variety of ways to communicate your complete benefits program and any new benefits so that your employees can make educated decisions on the full range of options available and feel secure that they and their families are financially protected.

Want to learn more? Let’s talk.

Our mission is to help clients protect assets and enhance employee outcomes through the delivery of exceptional risk management and employee benefit consulting services and products.

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