DO YOU KNOW WHAT’S REALLY INSIDE YOUR BENEFITS PLAN?

Who’s carrying the risk?

Depending on your circumstances you may want to own all of the risk in your plan, but for many small businesses sharing the risk with others makes more sense. You have more control over your costs when you carry risk, but your opportunities for smoothing costs over time may diminish. Either way, it’s important to understand who is carrying the risk when it comes to your plan.

Are your coverage caps appropriate?

Many of your coverages have caps built into them – the coverage ends when an employee reaches a certain limit. You don’t want to leave your employees without necessary coverage, but you also don’t want to open your plan up to abuse. Make sure you understand what limits are in place to reduce your exposure to high costs or over-use.

Not all disability coverage is created equal

Most business leaders know only two types of disability coverage: short-term and long-term. But did you know that within long-term disability are two more periods (known as “own occupation” and “any occupation”) that can have a huge influence on your plan costs? If you don’t know if your disability coverage is built for your business then you may be paying more than you should.