Ancillary benefits are non-traditional benefit packages offered by employers, often to supplement traditional or common benefits. In addition to giving employees more financial security or peace of mind. Ancillary benefits can be a great recruitment tool to bring in top employees who want something extra from their managers. Offering ancillary benefits also might improve the overall health and wellness of your employees when tied to a wellness program.
In some states offering group disability insurance can be an ancillary benefit, but in New York, employers are required by law to offer disability. Under the law, employers must pay out 50 percent of the disability claimant’s average weekly salary. The law caps the benefit at $170 per week. There’s a seven day waiting period and the benefit may only be paid for a maximum of 26 weeks out a period of 52 consecutive weeks.
Employers can offer ancillary benefits that go beyond what New York state mandates in its Disability Benefits Law (DBL). This may take several forms. You can raise the percentage of salary that’s awarded to the claimant or raise the weekly maximum. You can shorten or eliminate the waiting period before the claim is paid, or extend the period of time in which payments are made. Employers are allowed to ask employees to contribute to the plan, but this isn’t mandatory.
Sometimes ancillary benefits can be packaged together. For example, vision, dental, long term disability and group life can be bundled together by some insurers. Other plans can stand alone.
Offering ancillary benefits to your employees can help to address any unexpected costs they may occur unexpectedly that are not covered by their current benefit plan(s). Blair can help your business or organization find the right ancillary benefits for your disability insurance plan.