Different types of insurance make up a large part of the average American’s monthly expenses. We need everything from health insurance to car insurance so that we are prepared for when things go wrong. Otherwise, an accident or unexpected illness could leave us financially bereft.
If you work at a business of a certain size (the rule of thumb being that it employs over fifty people), your employer is obligated to cover some types of insurance. While there are those who would rather get paid more and cover insurance themselves, this arrangement is generally to the benefit of employer and employee.
But what types of insurance is your employer obligated to provide? Are there other types of insurance you should have as well?
Employers at companies that meet the requirements must provide the following 3 types of insurance.
Health insurance seems to be on everyone’s lips at all times and for good reason. Everyone has health needs at some point and American health care is remarkably expensive. Because there is no universal healthcare in America, illnesses and accidents leave people in insurmountable debt. Some people avoid going to the doctor altogether for this reason, leaving it until it is too late.
Employers need to cover health insurance as it is a basic necessity for the average American. It is also to the employer’s benefit, as their employees are able to get treatment and return to work.
If you lose your job, unemployment insurance pays out a stipend to help you cover your monthly expenses until you find a new job. Employers are required to cover unemployment insurance. It is important to note that unemployment insurance only pays out if the employee lost their job through no fault of their own. In other words, they get paid if they are laid off because of budget cuts or redundancies.
Workers’ compensation pays income to employees who cannot work due to injuries that occurred while on the job. Employers are required to provide workers’ compensation insurance, and it is certainly in their best interests.
Employers are obligated to cover the above 3 types of insurance. There are, however, important types of insurance that they can choose to provide and which employees should otherwise get for themselves.
The following types of insurance are important, but not legally required of an employer.
Anyone who earns income that contributes to the expenses of a household should have life insurance. What does life insurance cover? It provides a lump sum of money when the holder of the policy dies to the recipients specified. This sum of money makes sure the recipients can continue living their lives as before, without the deceased person’s income.
Employers are not required to cover life insurance. However, some do, generally including an amount in the policy that they will receive if the employee covered dies.
Certain accidents or illnesses can make it impossible for a person to continue working. Disability insurance covers this possibility, paying out a monthly sum in the event of a debilitating accident or illness. Unlike workers’ compensation, the disability does not need to have been incurred on the job. It is the individual’s responsibility to take out disability insurance, and is not required of the employer.
Dental insurance is not covered by most health insurance policies provided by employers. While dental needs are health-related and can lead to non-dental health issues, they are not given the same importance by insurance companies and other businesses. Some employers do offer dental cover to their employees but this is not an obligation.
The same is true of vision insurance, although unlike dental care, optometry is not needed by everyone. Vision insurance is generally taken out by individuals who have problems with eyesight or eye-related conditions, and is not required of employers.
Employers need to provide cover for 3 types of insurance: health insurance, unemployment insurance, and workers’ compensation. These types of insurance benefit both the employee and the employer. Other types of cover, including life insurance, disability insurance, and dental insurance, are optional, but individuals should take out policies if they are not offered by their employers.