HEB18 Additional Benefits

Question 1

Voluntary benefits

Types of voluntary benefits

Answer 1

1. Life insurance
2. LTD and STD
3. Dental and vision
4. LTC
5. Adoption assistance
6. AD and D
7. Legal services plan
8. Critical care plan
9. Cancer insurance
10. Hospital indemnity
11. Travel accident
12. Travel interruption
13. Student medical

Question 2

Voluntary benefits

Excluded from ERISA if 4 requirements are met

Answer 2

1. ER doesn’t make any contribution
2. Participation in the program is completely voluntary
3. ERs sole functions with respect to program are:
   
   3. 1 Permit insurer to publicize program
   4. 2 collect premium
   5. 3 remit premiums to insurer
4. ER receives no consideration (cash or otherwise) other than for administration services rendered

Question 3

Voluntary Benefits Advantages

Answer 3

1. Advantages for employers
   
   1. 1 offering more benefits without significant added costs
   2. 2 Supplement or replace ER-sponsored benefits
   3. 3 Benefits act as EE recruitment or retention tool
   4. 4 Offering benefits to EEs that meet performance goals
2. Advantages for EEs
   
   2. 1 EEs like convenience of benefits through the workplace
   3. 2 In many cases, benefits are portable so they can taKe them to a new job
   4. 3 advantageous pricing
   5. 4 purchase is made through salary reduction