Ancillary Coverage: Protect Yourself And Employees

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Ancillary Coverage: Protect Yourself And Employees
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With over 92% of Americans having health insurance coverage from either public Medicare, Medicaid, or private insurers, the importance of ancillary services cannot be overestimated.

Whether you’re an employer or an employee, knowing ancillary benefits can give you an edge in business or protect you with the non-wage benefits you need. But before we jump on the types of ancillary insurance programs, let’s mention the benefits mandated by law.

It may sound like a lot, but the ever-growing competition in the insurance market and increasing demand for all-encompassing insurance make extra insurance extremely popular.

Types of Ancillary Services

As an employee, you may need one or a few of the following types of ancillary insurance programs:

On top of that, you can have a Health Savings Account (HSA) for saving money for the medical expenses not covered by your health plan, as well as such benefits as hearing insurance, critical illness and accident insurance, accidental death, and dismemberment insurance, or pet insurance.

Who Pays for Ancillary Benefits, and How Do They Work?

Ancillary services can be employer-contributory (when the employer pays up to 100% of the premiums) or voluntary (when the employer contributes up to 49% of the premiums). On the employee’s side, the premium is simply deducted from the payroll.

The respective claim is submitted whenever employees use their ancillary benefits, and the money is paid to the beneficiary or the network-contracted provider.

Benefits of Ancillary Coverage to Employers

Ultimately, though, employer-contributory ancillary coverage improves employees’ quality of life, which never goes unnoticed in small and big businesses. All-encompassing ancillary service packages usually lead to an increase in the productivity and competence of the workforce.

ancillary service packages usually lead to an increase in the productivity and competence of the workforce.

Individual Ancillary Plans

There are individual ancillary plans for those willing to insure on an individual basis. Personal vision coverage, dental coverage, hospital indemnity plan, cancer indemnity plan, accident insurance, and other tailor-made types of coverage can help you protect yourself and your family against any adversity. 

Catering to your every need and whim, individual ancillary services may include flood insurance, fine art insurance, marine insurance, auto insurance, homeowner’s insurance, and even umbrella insurance.

The vast insurance market provides everything you need to feel secure and protected. Speaking of which, the top-five fastest-growing ancillary carriers in the U.S. are Delta Dental of Tennessee, Delta Dental of Indiana, EyeMed, Transamerica Life Insurance Company, and National Guardian Life Insurance Company.

The Bottom Line

No one has a crystal ball to predict the future, but we all know that unexpected events happen. It is up to everyone to take care of and protect our health and the health of our families, either through general health insurance or an extra insurance package.

There are no guarantees in life, so tip the probability scales in your favor through a thoughtfully chosen ancillary plan.


Oleksandr is an expert in deep research. He covers various insurance topics across verticals, adopting to every local law.

Date added: January 6, 2023