It’s not uncommon to hear a detailed, enthusiastic description of a benefits package from a friend who has just landed a new job. Now more than ever before, people understand the value that a solid benefits plan adds to the compensation they receive each year.

With medical costs on a sharp upward trend for the past few years, and many analysts expecting that to continue, large numbers of job applicants have been accepting lower annual wages in favor of jobs that offer good insurance.

The problem is that even with good insurance, the costs that arise from many health-related events can be substantial. Understanding that most health insurance plans only pay for about 80 percent of the costs after the deductibles are met, it’s easy to see why medical financial problems are the No. 1 cause of bankruptcy in our country today.

For those who have never had to experience the emotional and financial turmoil that is associated with a serious accident or disease, only having to pay for 20 percent of the medical costs may not seem like an issue. However, considering that some cancer drugs can run up to $100,000 per year, and that approximately 39 percent of men and women will be diagnosed with cancer at some point(1), this becomes a serious issue.

Employers now offer health plans with a higher deductible to keep their staff’s monthly premiums at a minimum. This can be a serious risk if something goes wrong, such as a cancer diagnosis or a serious accident to a child on the playing field. How is a family supposed to cope with ongoing copays and higher deductibles?

A supplemental benefits plan from Allstate can help to alleviate a significant portion of the financial burden. People with supplemental benefits can rely on their plans, knowing they have taken steps to help reinsure the additional 20 percent of the copays their existing provider does not cover.

Supplemental benefits are a cost effective option for employees and employers alike. Some plans pay a lump sum to the insured on diagnosis that can be used for any purpose. These plans were developed to provide an effective complement for any organization’s major medical plan.

With many different options available, such as critical illness insurance, cancer insurance, accident insurance and short-term disability insurance, there is a plan to fit each stage of a family’s life. Benefits are paid directly to the individual employee, and the wellness benefits encourage a healthy lifestyle. Since these products cover the employee and family whether at home or at work, they are becoming more relevant and popular every day. 

The fact is there is a lack of awareness about supplemental benefits plans, which is the original reason I’ve decided to write these Insights articles. In the next few articles I’ll detail the various costs and benefits associated with each plan. I will also detail how adding supplemental insurance can be an effective means of attracting and retaining employees.

For a consultation about supplemental benefit plans and the range of product offerings provided by Allstate, please contact me at the number below.

(1) National Cancer Institute website. SEER Stat Fact Sheets: All Cancer Sites. www.cancer.gov.

Will Brown is the owner of the Will Brown Insurance Agency LLC, and represents Allstate Insurance Company. Brown and his staff offer property, casualty, health and life insurance, as well as personal financial services and Allstate Benefits, one of the nation’s leading voluntary benefit plans. The Will Brown Insurance Agency has a comprehensive protection and investment product portfolio, with a strong commitment to serving families and small businesses in an advisory role. Will Brown may be reached at (910) 599-9071, or by email at [email protected]. To learn more about the Will Brown Insurance Agency, click here.