Voluntary Benefits for the Multi-generational Workforce

T H E M U L T I - G E N E R A T I O N A L WO R K F O R C E

S O C I E T A L T R E N D S & V O L U N T A R Y B E N E F I T S

H OW T O L A U N C H A V O L U N T A R Y B E N E F I T S P R O G R A M

T H E R O L E O F T H E V O L U N T A R Y B E N E F I T S C O N S U L T A N T

6 trends in voluntary benefit products Trend No. 3: Executive Reimbursement Plan

THE MULTI-GENERATIONAL SAFET Y NET

6 TRENDS IN VOLUNTARY BENEFIT PRODUCTS

OTHER POPULAR VOLUNTARY BENEFITS

Executive Reimbursement Plans supplement a traditional group health plan. The plan covers deductibles, copays, balance bills and other out-of-pocket costs for medical, vision and dental expenses not covered by a primary plan. Services, such as brand-name prescriptions, extensive dental procedures, corrective vision surgery, hearing aids, etc., are of value to highly paid top talent. How does it work? An Executive Reimbursement Plan is a fully insured program that reimburses high wage-earners and/or executives on a tax-free basis to cover their out-of-pocket medical, dental and vision expenses. Plans can be tiered with coverages ranging from $1,000 to $10,000, depending on the service. The top-level tier may require a minimum enrollment (example: 15 executives or high-wage earners). What to watch for: This plan is 100% employer-paid. Make sure that the amount of extra reimbursement is high enough to offset group medical, dental and vision out-of-pocket coverages. Trend No. 4: Executive Individual Disability Insurance Typical Long-term Disability insurance provides basic universal benefits that replace part of lost income when the employee is unable to work due to illness or injury. However, the basic benefit rarely replaces bonuses, commissions or any excess income above the base salary. Some group Long-term Disability contracts aren’t portable, either. Executive Individual Long-term Insurance adds an additional layer of Long-term Disability protection on top of a core plan, allowing the employer to “class out” executives without altering the group Long-term Disability contract. Executive Individual Disability Insurance protects the most important decision-makers in the event they become disabled. This coverage prevents them from getting short-changed. Executive Individual Disability Insurance also ends unintended discrimination against high-income earners. How does it work? Unlike workers’ compensation, Executive Individual Disability Insurance supplements income even when the illness or injury isn’t job-related. It typically follows the same elimination period as the group Long-term Disability contract. Claims can be made concurrently to other employer-provided Short- or Long-term Disability and Individual Disability contracts. What to watch for: Ensure that the amount of reimbursement is high enough to make a difference, especially for employee populations of high-income earners.

40% 70%

of people receiving long-term care services are 18-64 years old.

of people over age 65 will require long-term care services.

- National Institutes of Health

- National Institutes of Health

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