Supplemental Insurance Plans

Life’s full of unexpected moments. Planning ahead with supplemental insurance plans can help you and your employees feel more ready to handle the medical costs and out-of-pocket expenses that often accompany these unexpected events. Choose from a wide variety of plans, coverage, deductibles and benefits. And they are tax deductible for your business and excluded from your key employees’ income. Altogether, by offering all or some of these benefits, you can provide important supplemental benefits that will help you attract and retain key employees, and do so in a tax-effective way. Consult with Dion Jayakoddy Retirement & Insurance to learn how plans can help your business.

Types of Supplemental Insurance Plans

Health Insurance - You can provide income tax-free health insurance benefits for key employees on a discriminatory basis (i.e., not provided to all employees). The business pays the premium and receives a tax deduction, and the premium is excluded from the key employee’s income. 

Long-term care - You can pay for long-term care insurance for key employees who are 50 and older. They can use the benefits to pay for the cost of a nursing home, assisted living, or at-home care during retirement. As with health insurance premiums, these premiums are excluded from employee income. And benefits are income tax-free when applied to the insured employee.

Disability Insurance - You can also buy disability insurance in the same way – on a discriminatory basis – for your key employees. These are taxed differently than health insurance and long-term care coverage. The business deducts the premium. Then, depending on how the plan is structured, either the premiums are considered as taxable income for the employee and the disability benefit payments are income tax-free, or the premiums are tax-free and the disability benefit payments are taxed when received.

Life Insurance - The use of life insurance as a non-qualified benefit can be complex. Life insurance could be part of a bonus plan, deferred compensation, “split dollar” plan, or other financing arrangements. This insurance can supplement or replace other insurance.

Incentives for Business Owners

Give your business an additional boost that encourages your staff to remain engaged and productive. Benefit from many tax advantages as a business owner by consulting with Dion Jayakoddy Retirement & Insurance for tailor-made supplemental savings plans that provide:

  • Better recruit and retain the best employees 

  • More comprehensive coverage 

  • Opportunity to reward important employees

  • Tax deferral incentives

Overall, even though offering supplemental health insurance coverage means paying for a larger portion of employee premiums each month, the long-term benefits of offering additional plans may well outweigh the costs. Whether in the form of greater employee retention or coverage when you and your workforce need it most, supplemental plans may provide significant advantages for your business.

Consult with Dion Jayakoddy Retirement & Insurance to learn more about wide range of employee insurance products.