Preferred Package

The Preferred Package offers significant advantages for employees by providing consistent, affordable coverage. Accident Insurance and Hospital Indemnity Insurance with a Critical Illness Rider have fixed costs regardless of age, ensuring equal affordability for all employees. While Short-Term Disability Insurance adjusts based on age and income to tailor coverage, it still provides critical income protection during recovery. Together, these benefits offer predictable pricing, peace of mind, and robust financial protection, making them a valuable addition to any employee benefits plan. 

The Preferred Package: Comprehensive Coverage at an Affordable Cost

Unexpected medical emergencies or accidents can create financial stress for employees, making it essential to have insurance benefits that work together seamlessly. The Preferred Package—combines Accident Insurance (average cost: $10 per biweekly payroll), Hospital Indemnity Insurance with a Critical Illness Rider ($10,000) (average cost: $17), and Short-Term Disability Insurance (average cost: $18)—provides employees with a robust safety net at a reasonable price.

1. Accident Insurance: Affordable Protection When It Matters Most

Accident insurance, which costs an average of just $10 per biweekly payroll, helps employees manage the financial fallout from unexpected events such as a slip, fall, or car accident. 

Coverage includes:

• Emergency room visits
• X-rays, MRIs, or CT scans
• Outpatient surgery
• Follow-up care

This ensures employees have the financial means to address immediate medical needs without relying on savings.

2. Hospital Indemnity Insurance with a $10K Critical Illness Rider

For an average cost of $17 per biweekly payroll, Hospital Indemnity Insurance provides essential financial support for hospital stays, including:

• Cash benefits for hospital admission, ICU stays, and recovery periods
• Help with deductibles, copayments, and out-of-pocket expenses

The $10,000 Critical Illness Rider ensures employees receive a lump-sum payment if they are diagnosed with a serious condition like cancer, a heart attack, or a stroke, giving them the financial flexibility to focus on recovery.

3. Short-Term Disability Insurance: Income Replacement at a Low Cost

For an average cost of $18 per biweekly payroll, Short-Term Disability Insurance offers:

• Income replacement (usually a percentage of regular earnings)
• Financial stability to cover living expenses like rent, utilities, and groceries while recovering from an illness or injury

This benefit is crucial for employees who rely on consistent income to meet their financial responsibilities during recovery.

How These Benefits Work Together

The Preferred Package provides comprehensive employee protection, addressing immediate and long-term financial needs. Here’s an example of how these benefits can work in tandem:

• An employee is injured in a car accident and requires hospitalization.
  • Accident Insurance covers immediate costs like the emergency room and diagnostic tests.
  • Hospital Indemnity Insurance provides cash benefits for the hospital stay, helping manage out-of-pocket expenses.
  • Critical Illness Rider ensures additional financial support if the employee sustains a serious condition during the event.
  • Short-Term Disability Insurance replaces lost income during the recovery period.

Together, these benefits offer peace of mind, financial stability, and comprehensive support for employees during challenging times.

Affordable and Effective Benefits for Your Team

By offering the Preferred Package, employers can deliver impactful benefits while keeping costs manageable. For just $45 per biweekly payroll, employees gain access to critical protections that improve their overall financial wellness and peace of mind.

Employers who include this package demonstrate their commitment to employee well-being, enhancing satisfaction, morale, and loyalty—all of which contribute to long-term business success.

Scenario:

Sarah, 44, is a marketing manager earning $55,000 annually and is covered under her employer’s group health insurance plan. Her plan includes a $5,500 deductible and additional co-pays for hospital stays and services. After being involved in a car accident during her commute, Sarah sustains injuries requiring hospitalization, physical therapy, and a two-month recovery period away from work. Here's how the Preferred Package—Accident Insurance, Hospital Indemnity Insurance with a $10,000 Critical Illness Rider, and Short-Term Disability Insurance—works alongside her group health insurance and state disability insurance (SDI) to protect her financial well-being.

1. Accident Insurance Covers Upfront Medical Costs

Sarah’s group health insurance requires her to cover the $5,500 deductible before her coverage begins.

• Accident Insurance provides a cash benefit to help pay for:
  • Emergency room visits
  • Imaging costs (X-rays, MRIs)
  • Surgery and follow-up appointments
• * Sarah receives a payout, which significantly reduces her upfront medical expenses and covers most of her deductible.

2. Hospital Indemnity Insurance Provides Additional Support

Sarah is admitted to the hospital for a multi-night stay, incurring significant co-pays even after meeting her deductible.

• Hospital Indemnity Insurance provides:
  • A lump-sum benefit upon hospital admission
  • Daily cash benefits for each day spent in the hospital and ICU
• These funds help Sarah manage her out-of-pocket costs, such as co-pays for her hospitalization and therapy sessions.

Additionally, Sarah was diagnosed with a concussion as a critical illness related to the accident.

• The $10,000 Critical Illness Rider delivers a lump-sum payout that Sarah uses to cover household expenses such as her mortgage, utilities, and groceries while she recovers.

3. Short-Term Disability Insurance and SDI Protect Her Income

Sarah is unable to work for two months while recovering. Fortunately, her income is protected through a combination of:

• State Disability Insurance (SDI): Covers 60% of her regular income.
• Short-Term Disability Insurance: Covers an additional 40%, ensuring Sarah receives her full income during her recovery.

This combination enables Sarah to maintain her financial stability, covering everyday living expenses without dipping into her savings.

Out-of-Pocket Costs Without the Preferred Package

Without the Preferred Package, Sarah would face:

• $5,500 deductible and co-pays for hospital stays and follow-ups
• Lost wages during her two months of recovery, as SDI alone would not fully replace her salary
• Unexpected expenses related to her critical illness diagnosis

In total, Sarah’s financial burden could exceed $10,000.

The Outcome

With the Preferred Package, Sarah’s financial stress is minimized:

1. Accident Insurance helps cover her deductible and immediate medical costs.
2. Hospital Indemnity Insurance and the Critical Illness Rider provide cash benefits to offset hospital and therapy costs.
3. Short-Term Disability Insurance ensures that Sarah receives 100% of her income in partnership with SDI, allowing her to recover without financial strain.

This powerful combination of benefits demonstrates how employers can provide a safety net for employees, giving them the financial security they need to focus on their health and recovery. The Preferred Package isn’t just a benefit—it’s a lifeline for employees facing unexpected challenges.

 *The average costs listed are based on biweekly payroll for a 44-year-old employee earning $55,000 per year.