Ancillary Benefits: The Big 3

What Are Ancillary Benefits? Why Are They Important?

What Are Ancillary Benefits?

Ancillary is just a fancy word in the group benefits world for dental, vision, and life insurance. Dental and vision insurances are considered health insurance products, but they are separate from major medical.

Why Are Dental and Vision Benefits So Important to Employees?

Dental insurance is highly overvalued when compared to the value of something like life insurance that can truly impact an individual or family’s life financially.

When it comes to dental and vision insurance, a lot of times employees and most Americans in general just want to know that it’s there and that they have it, but they might not know exactly how dental insurance works and/or how vision insurance works.

What One Financial Writer Has To Say About Dental:

Writer of Funny Money, and blogger, Phil Villarreal, lists his top 5 reasons for getting rid of your dental insurance.

  1. You Won’t Use It Enough
  2. You can get a cheap cleaning from a good dentist without having dental insurance. Just pay out of pocket.
  3. He claims that insurance incentivizes dentists to talk you into getting more and unnecessary work done.
  4. Dental exams expose us to radiation that we don’t need.
  5. And he says most of us have already had our wisdom teeth taken out.

The full article can be read on Money Under Thirty, titled, 5 Reasons to Ditch Your Dental Insurance

Life Insurance

Group life insurance is the most impactful of the 3 ancillary benefits. Life insurance provides a tax-free check to one or more beneficiaries in the event of a person’s untimely death. This coverage can be used to cover funeral expenses, mortgage payments, and so much more.

The ability to get life insurance through an employer can come with some amazing advantages like: Guaranteed Issue Coverage. Guaranteed issue coverage is great because it keeps the rates generally low and does not require any type of medical exam or health questionnaire to be covered. For some, this may be the only option to get a decent life insurance policy.

Final Thoughts on Ancillary Benefits

Dental and Vision insurance are a few of those core benefits that employees value because the average human has always been told they need dental and vision coverage.

The larger the group size, the cheaper something like a vision or dental plan is. Dental and Vision should most definitely be offered from a business perspective of providing current and prospective employees what they want.

Life Insurance can provide such a greater benefit and aside from pricing, offering it through a group can provide employees who normally wouldn’t qualify with with great coverage .