Group Ancillary Lines of Coverage
Ancillary products include dental, vision, life, short term disability and long term disability. These plans can be sold with a medical plan or by themselves. By selling ancillary lines you are not only increasing your commission check, but you are also expanding your book of business with your clients. Adding these lines of coverage can help you retain your client because you become their “one-stop shop”. The lines available for your individual and group clients are illustrated below.
Highlights of Group Ancillary Lines include:
Group Dental Insurance is usually less expensive than individual insurance and typically has no waiting periods for procedures; only a few policies have elimination of waiting periods.
Group Vision Insurance covers additional vision expenses that most medical insurance plans do not. Some medical policies will cover an exam but do not, however, typically cover contacts or lenses.
Group Short Term Disability Insurance covers a portion of an employee’s wages for short term illness including maternity and accidents. It is an inexpensive way for employers to protect employees from lost income for missed work. This can also be written on a voluntary payroll deduction basis. These overages are not portable.
Group Long Term Disability Insurance covers a portion of an employee’s income if he or she incurs a disabling illness or has an injury leaving him or her unable to continue working. A Group Long Term Disability policy is much less expensive than if an individual sought out coverage on his or her own. Employers have many options on coverage selected for their employees. This coverage is also not portable.
Group term life insurance is usually guaranteed issue (no medical questions asked) unlike individual life insurance policies. Up to certain limits of this valuable coverage can be paid by employers or elected by employees at their cost on a convenient payroll deduction. Some employers select to sponsor base life insurance coverage for all eligible employees and also allow employees (and their dependents) to enhance this coverage by offering a voluntary plan. Most of the voluntary plans are portable.
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