Ancillary benefits are additional services or products that complement employee's primary health insurance plans. They can help cover expenses that are not typically covered by medical insurance, such as dental, vision, or hearing care. Ancillary benefits can also provide employees with protection and peace of mind in case of unexpected events, such as identity theft, legal issues, or pet health problems.
In this article, we will explain what the four most common types of ancillary benefits are: identity protection, telehealth, prepaid legal, and pet insurance. We will also discuss the benefits and features of each one.
Identity Protection
Identity theft is a serious crime that can have devastating consequences for your finances, credit, and reputation. According to the Federal Trade Commission (FTC), identity theft affected more than 2.1 million Americans in 2020. Identity thieves can use your personal information to open new accounts, make purchases, apply for loans, file taxes, or commit fraud in your name.
Identity protection is an ancillary benefit that can help you prevent and recover from identity theft. It is a type of insurance policy that provides financial protection for victims of identity theft. Coverage varies between insurers, but identity protection generally aims to cover costs associated with the recovery process after you have become a victim of ID theft. These costs may include:
- Legal fees
- Lost wages
- Credit monitoring
- Fraud resolution
- Identity restoration
Some identity protection plans may also offer preventive services, such as alerts, education, and support to help you safeguard your personal information and avoid identity theft.
Telehealth
Telehealth is the use of technology to deliver healthcare services remotely. It can include phone calls, video chats, online portals, mobile apps, or wearable devices that allow you to communicate with your healthcare providers, access your medical records, monitor your health conditions, or receive treatment from the comfort of your home or office.
Telehealth has several advantages over traditional healthcare delivery methods, such as:
- Cost savings: Telehealth can reduce the need for expensive and unnecessary visits to the doctor’s office, hospital, or emergency room. It can also lower the costs of transportation, parking, childcare, or missed work.
- Convenience: Telehealth can save you time and hassle by allowing you to schedule appointments at your convenience, avoid long waits, and receive care without traveling or leaving your location.
- Accessibility: Telehealth can provide care to people who have mobility limitations, live in rural areas, or face barriers to access quality healthcare services. It can also increase the availability and diversity of healthcare providers and specialists.
- Quality: Telehealth can improve the quality and outcomes of health care by enabling early detection, diagnosis, and treatment of diseases; enhancing patient engagement and satisfaction; and facilitating coordination and continuity of care among different providers.
Prepaid Legal
Prepaid legal services are a type of ancillary benefit that offer access to legal assistance for a fixed monthly or annual fee. Prepaid legal services can help you deal with various legal issues that may arise in your personal or professional life, such as:
- Insurance disputes
- Personal injury
- Criminal matters
- Family law
- Estate planning
- Consumer protection
- Employment law
- Business law
Prepaid legal services typically include consultations with lawyers who can provide you with legal advice, guidance, and representation. They may also include legal review of contracts, deeds, and other types of legal documents. Services may also include preparation of documents such as wills, powers of attorney, and contracts. Plan members are also able to access a database of legal forms and documents through the company selling the plan.
Prepaid legal services can provide you with several benefits, such as:
- Affordability: Prepaid legal services can save you money by offering lower fees than hiring a lawyer on an hourly basis. They can also help you avoid costly legal problems by providing preventive and proactive legal support.
- Accessibility: Prepaid legal services can make it easier for you to find and contact a qualified lawyer who can handle your specific legal needs. They can also provide you with 24/7 access to online resources and tools that can help you understand your legal rights and obligations.
- Peace of mind: Prepaid legal services can give you peace of mind by ensuring that you have legal protection and representation in case of any legal issue or dispute. They can also help you reduce stress and anxiety by providing you with professional and reliable legal assistance.
Pet Insurance
Pet insurance is a type of ancillary benefit that covers the health care expenses of your pet. Pet insurance is similar to human health insurance in that it provides payment or reimbursement for specific health expenses that are covered by the policy. These expenses may include:
- Veterinary visits
- Diagnostic tests
- Medications
- Surgeries
- Hospitalizations
- Emergency care
- Dental care
- Preventive care
Pet insurance can offer you several benefits, such as:
- Financial protection: Pet insurance can help you avoid paying high veterinary bills out of pocket, which can be a significant financial burden for many pet owners. Pet insurance can also help you budget for your pet’s health care costs by allowing you to pay a fixed monthly or annual premium.
- Health care choices: Pet insurance can give you more flexibility and options when it comes to choosing the best health care provider and treatment for your pet. Pet insurance can also allow you to access more advanced and specialized veterinary services that may not be otherwise affordable or available.
- Pet well-being: Pet insurance can improve the well-being and quality of life of your pet by enabling you to provide them with the best possible health care. Pet insurance can also encourage you to take your pet for regular check-ups and preventive care, which can help prevent or detect diseases and health problems early.