Auburn Workplace Benefits Frequently Asked Questions
Why bother with supplemental insurance? Don’t I get enough coverage through my employer?
Most employees are faced with a dilemma. They want to buy life and health insurance plans to better protect themselves and their families in case of an accident. But they can’t get the coverage that they need through their employer because of excessive costs, and they can’t get the service that they need to buy supplemental policies from most insurance companies because they are not a “big” account. So they are left with insurance coverage that doesn’t meet their needs.
Many times, group insurance may be provided by an employer but group insurance doesn’t always meet the employee’s needs, sometimes not even providing for spouse or children. In addition, after an employee retires of leaves the employer, group insurance may not be available or affordable.
How can I as an employer help provide quality Auburn Insurance coverage for my employees without breaking the bank?
At Resource Insurance Group, we understand the dilemma of employer and employee. We can help you find a balance between great insurance coverage for your employees at a price you can afford. All of the following products are available to you at no cost to you:
- Universal Life
- 20 Year Renewable Term Life
- Cancer/Dread Disease
- Disability Income
- Accident Protection
- Critical Illness
- (SHOP) Hospital Indemnity
Why Should the Employer help the Employee?
We know that as an employer, you want to find and keep quality employees that will be loyal to you and your company. One way that you can let your employees know that they are valued is by providing a way for them to get the life and health insurance that they need to feel secure in their situation. Employees also appreciate the added options that we can provide, like payroll deduction. Payroll deduction is a convenient and painless way to let your employees know that you care about them and their time. Having employees that are happy with their benefits leads to increased productivity, lower employee turnover, and can attract and maintain quality employees.
What is the employer’s role?
We have done our best to make sure that this process is easy and convenient for the employee and the employer. There is virtually no cost to the employer.
If the employer has a Section 125 “Cafeteria” plan, there are savings to the employer in “matching” FICA costs when certain supplemental health plans are purchased through payroll deduction. Contact your agent to ensure your eligibility.
How does the Employee benefit from Voluntary Programs?
Payroll Deduction Universal Life and many of our other supplemental health policies are portable. If for some reason the employee leaves their present employer, they simply continue paying the premium and their coverage will continue on.
Universal Life credits a current interest rate to the policy’s accumulated value: a minimum guaranteed rate applies.
Cash values from Universal Life policies can be used for emergencies
Because of the size of employer-sponsored payroll deduction programs, this coverage is offered on either a “Simplified Issue” or “Select Contingent Guarantee Issue” basis.
The individual life and health insurance coverage offered is entirely voluntary and is designed to supplement other insurance programs the employee may already have.
If the employer has a Section125 “Cafeteria Plan,” the employee realizes savings, because premiums for the insurance are paid on a “pre-tax” basis.
Premiums paid before the “take home pay” are perceived as a benefit to most employees.
How many employees are needed to set up a payroll deduction program?
Only three (3) policies are needed to qualify.
What do I need to do to set up a payroll deduction program for my company?
It’s simple. With the help of your RIG agent, you can take the following steps to set up a payroll deduction program.
- Announce to your employees that the new voluntary coverage will be offered.
- Arrange a meeting with all employees to officially announce the program and field any initial questions they may have.
- Arrange subsequent one-on-one meetings with each employee to determine their interest and apply for coverage.
- Determine the first premium deduction date.
- Arrange a meeting between your company’s payroll personnel and the Allstate agent to determine the employee’s paycheck deductions.
- Following these sessions, we will call your company’s payroll personnel to answer questions or help with any problems that may arise.
How much time is needed for these meetings?
Depending on the employee’s interest, these meeting should only take 15-20 minutes away from their work schedule.
Who do the employees contact with questions or other service issues?
Our Policy Service Representatives are available through our toll-free telephone service.
When will the employer receive the billing from the Auburn insurance company?
Billings are sent to the employer after each month’s premium is deducted from the employee’s paycheck.