Employee Benefits - Employee benefits can be explained as different non-wage
compensation offered to employees other than their normal salaries or wages. Some
good examples of these benefits are group health insurance, group term life insurance,
disability income protection, housing, retirement benefits, tuition, daycare, sick
leave, reimbursement, vacation, profit sharing, education funding, and similar specialized
Types of Employee Benefits - Following are explanations of different type
of employee benefits.
- Medical Insurance - Medical insurance, as an employee benefit, covers the
costs of physician as well as the surgeon fees, prescription drugs, and hospital
rooms. Besides, dental and optical care might also be offered as a part of an overall
benefits package. It might also be offered as individual pieces. Also, coverage
can, many a times, include the employee’s family.
- Disability Insurance - Disability insurance replaces whole or a part of income
which is lost in case a worker is not capable of doing the job due to illness or
injury. The disability insurance can be divided into two main categories namely,
short-term disability and long-term disability.
- Retirement benefits - Retirement benefits are funds which are set aside to
avail people with a pension or income after the ending term of their career.
- Life Insurance - Life insurance protects the family of the employee in case
of his death. These benefits are paid in one single installment to the policy beneficiaries.
- Paid time off - The paid time off is earned by the employees while working.
The most common types of this employee benefit include holidays, vacation leave,
- Fringe benefits - Different types of non-cash payments are used to attract
and hold talented employees. These benefits are referred as fringe benefits and
include tuition assistance, child-care benefits, non-production benefits, and flexible
medical or child-care spending accounts.
Flexible Benefits - Flexible benefit plans recognize changes in employee's
needs by permitting them to choose their benefit type and allocate their contributions
according to their priorities. These plans can also provide benefit options not
usually available with traditional plans (e.g. the purchase of vacation days and
Group (Term) Life Insurance (GTL) - A type of insurance coverage offered
to a group of people. This coverage will provide a benefit to the beneficiaries
if the covered individual dies during the defined covered period. As with other
types of group benefits, group term life insurance is generally cheaper than comparable
individual policy coverage. For this reason, group term life insurance is often
a key component in employee benefit packages.
Group Health Insurance (GMC) - An insurance plan that provides healthcare
coverage to a select group of people. Group health insurance plans are one of the
major benefits offered by many employers. These plans are generally uniform in nature,
offering the same benefits to all employees or members of the group. Group health
insurance helps companies identify and mitigate the risks their employees face.
Rising costs of Healthcare have made it necessary for every employer to cover their
employees and their families from financial instability that may arise in case of
Group Personal Accident (GPA) - Group Personal Accident insurance (GPA) provides
protection to employees of a company and their families in the event of death or
disability due to an accident. Coverage can be limited to accidents related to their
occupation only, or allow for any accident 24 hours a day. Covered events include:
- Accidental Death
- Permanent Total Disablement
- Permanent Disability Continental Scale Benefits
Benefit levels are based on a schedule that you define. Different employee groups
may receive distinct benefit levels, or everyone may receive comparable benefits.
Our underwriting experts know the options and issues, and can work with you or your
broker to find cost effective solutions. You can be confident that you have provided
compliantly and appropriately for your domestic and overseas staff.
Group Travel Insurance (GT) - Group travel insurance cover can offer great
discounts where a number of people are traveling with the same itinerary. For sports
teams attending a championship tournament overseas, school or college groups on
a cultural tour, or business people from the same company attending a conference
together, this type of cover can offer welcome reductions.
Group Personal Pension (GPP) - A group personal pension plan (GPP) is a collection
of personal pension plans (PPPs) provided by an employer for its employees.
A PPP is a type of defined contribution arrangement. It is essentially an investment
policy that provides an income in retirement. The policyholder contributes to the
plan, the money is invested and a fund is built up. The amount of pension payable
when the policyholder retires is dependent upon:
- the amount of money paid into the scheme;
- how well the investment funds perform; and
- the ‘annuity rate’ at the date of retirement. An annuity rate is the factor used
to convert the ‘pot of money’ into a pension.
A pension scheme that an employer sets up for the benefit of their employees. All
staff can become members of the same scheme. Group personal pension schemes are
individual policies taken out by people working for the same employer that are grouped
together for administrative convenience.
Group Gratuity - Group Gratuity Cash Accumulation Plan is a non–linked non-participating
fund based Variable Insurance Product. This plan helps to meet the employer’s obligation
for statutory Gratuity Benefit to their employees. The plan also offers Life Cover
Benefit so that in case of death of a group member an amount equal to sum assured
in respect of that member will be paid. The amount of life cover in respect of each
member shall be guided by the scheme rules of the employer.
Mandatory benefits - Mandatory benefits are benefits that the government
mandates, or requires, that employees receive from employers as a matter of law.
Let's look at the primary mandatory benefits provided to employees:
Voluntary benefits - Voluntary benefits are insurance products that employees
may choose to purchase through their companies at rates that are lower than they
could get on their own. A few examples of voluntary benefits are dental, vision,
life, disability, supplemental health and cancer insurance. Many employers offer
voluntary benefits because they allow companies to provide a more robust benefits
package at no cost to them.