Ancillary Benefits
What Does Ancillary Benefits Mean?
Ancillary benefits are additional perks provided by an employer as part of an employee’s health insurance plan. These benefits typically include vision care, dental care, and life insurance. While the employer often subsidizes these benefits, they may also ask employees to contribute. These ancillary benefits are then integrated into the existing group health insurance plan.
Insuranceopedia Explains Ancillary Benefits
The health of employees directly impacts their performance, which is why employers provide health insurance. When an employee becomes ill, health insurance helps cover their medical needs, allowing them to recover and return to the workforce. However, basic health insurance may not be sufficient.
Vision is essential for many jobs, yet some question why it isn’t included in traditional health plans and remains an ancillary benefit. The widespread use of computers in the workplace, for example, may contribute to vision deterioration. Similarly, the importance of dental care is often underestimated, despite the high cost of dental procedures. Additionally, eye and dental check-ups can uncover underlying health issues; for instance, blurred vision can be a sign of diabetes. Lastly, life insurance is crucial in the event of an employee’s unexpected death, as it provides financial security for their family, especially if the employee is the primary breadwinner, which could result in a complete loss of income.
