Abstract
In this research paper our major focus is on employee cover and the benefits that accrue to the insurance cover. Further the data examines different health care issues and worker’s satisfaction with the treatment they get in health facilities today in building their future trust of the nation’s healthcare system. Medical care programs designed for these workers are also another factor to be discussed and its importance to the client to confirm their loyalty if they are fully functional and help their workers when need arises. If taxes on employees were to be increased some of the workers will continue with their leverage duty despite their plans for a different health plan, the insurance cover must be in relation to the type of company that one is working with. Larger companies due to the dynamic environment need to struggle to understand how corporate leaders should get involved in local insurance benefits. Know how much they premiums costs and what type of risks they may incur in the enterprise during its daily activities for compensation to be made streamlining the administrative process and function.
Insurance covers for the workers are essential and mandatory provisions to the employees that are considered under employee benefits. These provisions have been affected by many factors in organizations such as reduced budgets, rising costs, and unstable economies. Health benefits that are employer-sponsored are a crucial consideration of the human resource management since they make up a large part of the compensation package that workers in the firm are offered. Reddick (2009) explains that over the years, these benefits have unfortunately reduced because of unavoidable factors such as an increase in the amount of premium charged by insurance companies caused by inflation. For example, in 2004, they rose by 9.2% before the end of 2005. Some organizations have however resorted to offering the best of the employee insurance packages to make up for the low salaries that they offer their workforce.
Considering how disloyal and dissatisfied the workers in the current market are, it is crucial that employers consider providing the workforce with benefits such as insurance to ensure that they remain loyal. Some employers do not realize the importance of providing these benefits because if the workers leave, then the skilled workers will have been lost to the competition and the overall organizational productivity reduced because of the failure to provide insurance benefits (Scorza, 2011).
There are numerous reasons for firms getting applications whenever they apply for a vacancy,and most, health insurance is usually a prime reason. This package is not only beneficial to the employee but to the firm as well because, in the long run, a compensation package with salary and health insurance tends to be better than that of salary alone. The advantage for the company may not be obvious as in the case of the workers, however, the fact that it allows the enterprise to attract and retain top-notch employees is a benefit that is worth the extra expense.
O’Brien (2003), however, reveals that this is true according to the standard theory, which emphasizes that health benefits offered by a company may affect it negatively because it will have a higher chance of attracting sick workers or those with dependents who are unwell. In this consideration, the new workforce will be more expensive to maintain, and the productivity will be much lower than what is expected of them.
The theory can, however,be disputed because it is not just the workers with related health problems that are usually attracted to such compensation packages since sickness can be speculated. As such, even their healthier counterparts are bound to prefer benefits that include health covers that are of different types, however, still effective.
Various types of Insurance Programs Available in an Organization in terms of Compensation and Benefits Package
Define and Discuss Advantages of:
Life Insurance – This type of insurance can be described as that which offers infused cash for realization after the insured’s death. Unlike the others, one benefit is that it is usually tax-free in that, the benefits realized after the death are a tax-free income for revealed for the beneficiary. After the money has accumulated, it offers the insured a source of money through policy loans if the need arises. Furthermore, it offers asset protection especially in cases of estate taxes. In the event that death has occurred, then the family members remain with enough finances to sustain them (Northwestern Mutual, 2013). Offers a long-term security for both the insured and the family because the money accumulated can be converted into annuities. Additionally, it can be stated that the life insurance offers protected insurability. This means that if the payment of them premiums had been regular, then one is entitled to the cover throughout their life.
Universal &Whole Life Insurance – The former refers to the life insurance option that offers the customers premium payment flexibility while allowing them to save on it and realize the death benefits if there is a need. It is usually referred to as adjustable insurance because the condition can change after the initial premium. It comes with an investment account in some cases, with credited interest that is on a deferred basis leading to a rise in the cash value of the insured. The latter, on the other hand, focuses on the long-terms objectives of the insured and demands that the premiums are paid consistently to ensure the benefit of cash value valuation. The advantage is that there is an option of opting for a surplus, which allows the insured to get dividends on a yearly basis.
Accidental Death – This cover can be taken in speculation that accidents are bound to happen in life. It can even be argued that accidents are among the top causes of death in the world. This insurance is meant to be of use to the beneficiary of the person who has taken the policy. It is the amount of extra, paid even after the amount payable on normal terms has been paid out, as long the cause of death is natural and accidental. The duration was taken, however, depends on the company that is in charge, although it may last up to a year. The policy emphasizes that the death should be an accident such as drowning or homicide and may exclude dangers hobbies, suicide, and war. The advantage is that the beneficiaries will have a hold of tax-free money. In addition, the cover is long term and covers until one is 76 years old.
Dismemberment–In this consideration, it is usually taken as part of the original cover, however upon the occurrence of the accident, one is paid a portion of the value of the life insurance. Usually 50%. There are however some special instances when the amount of money is 100% value although this only occurs if the insured loses both leaves, or both eyes fail. It is usually preferred by the younger workforce because they assume that they have a higher chance of dying in an accident than of natural causes. The advantage is that the dismembered staff can enjoy greater financial security in case any tragic incidences occur.
Long and short term disability insurance - Disability insurance covers medical status on an employee when he or she gets severe injury preventing him from further activities. Such an incident occurs while a worker is still in the line of duty such as falling with cranes when loading and offloading containers and cancer. It is provided through a person’s employer to the insurance company registered with the firm. Long term disability covers longer medical care services and the benefits are given to the victim when he is sixty-five years and above (U.S Department and Human services, n.d). An advantage is that if the client enrolled with Social Security Disability Insurance (SSDI) as a program for a cash benefit, the organization helps him become liable for medical care throughout his period of illness making it easy for him to receive proper treatment and medical attention (Disability Benefits,2015).
Short term disability insurance, on the other hand, pays for part of an employee's salary when he becomes partially physically challenged meaning he is not able to work for a shorter period because of injury or sickness that needs special medical attention such as Kidney transplant. It is covered by Workers Compensation Insurance(WCI). According to the National Association of Insurance Commissioners, they estimated that these benefits be given to the patient every month and lasts between three to six months and upto two years according to the Insurance Information Institute(III) in America (Trustee Choice 2016). An advantage is that through an employee’s third party, the employer pays the premium on behalf of his client and the amount effected on his payroll as taxable income. Another importance is they benefit from the payment immediately mostly in fourteen days from the day of illness reducing their household financial burden (Benefits Consultant 2016).
In conclusion, insurance policies are of importance regardless of our age. Any person of eighteen years and above is allowed town an insurance cover of his choice. The agreement must be metin the period one wants to own that insurance cover and the most beneficial one should last for more than ten years to earn more interest on the premiums paid throughout. Before any compensation is done, the insured and the insurer must ensure that the cover matches the claim and that it should be accidental. As an illustration, if the insurer took a cover on health then the compensation needs to be done in relation to his family health issues only. For any cover, the amount of protection depends with the value of the item or property one wants to pay premiums on. A higher the comprehensive cover offers a greater advantage when it comes to premium compensation.
Lastly, when an employee or any other business citizen has insurance cover depending on field of specialization, he is more secure as the company will still be in existence should any natural calamity or incident occur as compensation will be done less than 30 days immediately from the day of occurrence depending on the nature of the premise. If an employee gets an injury in the line of duty due to holding defaulted or worn out machines he has a right to sue the company manager in a court of law for damages and through the court order the manager will hold the liability for compensating the worker a full amount as per the orders in court.
References
Scorza, J. (2011). Benefits Can Boost Employee Loyalty. Society of Human Resource Management. Retrieved from https://www.shrm.org/hrdisciplines/benefits/articles/pages/benefits_loyalty.aspx
O’Brien, E. (2003). Employers’ Benefits from Workers’ Health Insurance. The Milbank Quarterly, 81(1), 5-43
Reddick, C. G. (2009). The Importance of Employee Health Benefits to Public and Private Sector Organizations. Public Personnel Management, 38(2), 49-54
NorthWestern Mutual. (2013). 6 Ways Life Insurance can Benefit You. Forbes. Retrieved from http://www.forbes.com/sites/northwesternmutual/2013/12/31/6-ways-life-insurance-can-benefit-you/#6db4520755b5
